Presumably, since the United States is a large country in many of its international markets, a positive optimum tariff exists for this country
It follows therefore that when any legislator or government official who promotes zero-tariff free trade policies, is by definition not acting in the public's best interest. Discuss.
Technically this is true. However, this is true only within the context of a generally myopic view of international relations. If the tariff imposing country is large enough to make a substantial difference in its welfare by seeking an optimum tariff, then it cannot hope to remain invisible, as its policies are substantially harming its trade partners. Foreign repercussions are almost a certainty. In such a "game" it is not at all certain that seeking the optimum tariff dominates alternative strategies.
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Which of the following is not one of the four anti-competitive activities outlined in the Clayton Act?
a. Price discrimination. b. Exclusive buyer/seller contracts. c. Buying a competitor's voting stock. d. Buying a competitor's plants and equipment. e. Interlocking boards of directors.
To fully understand how taxes affect economic well-being, we must compare the
a. consumer surplus to the producer surplus. b. price paid by buyers to the price received by sellers. c. reduced welfare of buyers and sellers to the revenue raised by the government. d. consumer surplus to the deadweight loss.
In the last four decades, the share of income going to U.S. households in the top fifth of the population:
a. has declined. b. has increased. c. has remained the same. d. has decreased by 50 percent.
In which of the following externality situations would it be most likely that voluntary agreements could be used to internalize an externality?
A. littering on highways B. trees of one neighbor blocking a view of another C. overharvesting of alligators in Louisiana D. poaching of elephants in Africa