What does a successful protective tariff do?
(a) It forces foreign manufacturers to pay higher wages.
(b) It re-enforces competition.
(c) It creates an "economic rent" that goes to the competing domestic industries producing the
taxed imported goods.
(d) It mandates accelerated technological advance in the domestic economy.
(c)
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Profits account for about 30 cents out of each dollar spent on goods in the United States.
Answer the following statement true (T) or false (F)
How might a problem like the Bird Flu which can make thousands of birds sick and scare consumers about possible problems with eating items like chicken or eggs affect the market for chicken?
A. Price increases and quantity is indeterminate B. Quantity increases and price is indeterminate C. Quantity decreases and price is indeterminate D. Price decreases and quantity is indeterminate
In Figure 5-18, point D for the consumer
A. will be chosen because total utility is larger there than at point C. B. would not be chosen because it is less desirable than point C. C. is unattainable, given the consumer’s budget. D. has total utility equal to point C.
A person's consumption possibilities is defined by the budget line because
A) it marks the boundary between what is affordable and unaffordable. B) it represents the individual's preference for different combinations of goods. C) it marks the boundary between what can be produced and what is unattainable given the current state of technology and resources. D) all consumers must consume on their budget line.