A tariff differs from a quota in that a tariff is
a. levied on imports, whereas a quota is imposed on exports.
b. levied on exports, whereas a quota is imposed on imports.
c. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported.
d. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.
D
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Refer to Figure 23-2. If the U.S. economy is currently at point N, which of the following could cause it to move to point K?
A) Government expenditures increase. B) Firm's cash flows rise as profits rise. C) Households expect future income to rise. D) Household wealth falls.
Clustering: a. occurs when government resources are diverted toward one particular sector of the economy
b. takes place when new firms enter regions already thick with other firms in the same or similar industries. c. occurs when there is a single firm in the economy that can charge different prices for the same product. d. implies that consumers with similar tastes and preferences tend to stay in the same region. e. occurs when all the firms in the industry sell identical commodities and charge identical prices for these commodities.
From a society's viewpoint, when all resources are fully employed, a decision to have more of one thing means we must give up some of another thing
a. True b. False Indicate whether the statement is true or false
Which of the following is the best description of the production possibilities frontier (PPF)?
a. The PPF is a curve showing alternative combinations of goods that can be produced when available resources are used efficiently. b. The PPF is a curve showing the quantity of a good or service supplied by producers at each price level. c. The PPF is a curve showing the changes in output of a good or service brought about by changes in input usage. d. The PPF is a curve showing the different input combinations used to produce a particular good or service.