Which of the following is true of the specificity rule?
A. According to the specificity rule, government policy should target as closely as possible the source of the distortion that separates private and social benefits (or costs).
B. According to the specificity rule, only specific industries should be allowed to participate in government lobbying.
C. The specificity rule posits that a tariff imposed on a good favors only the interests of a specific group within a country.
D. The specificity rule suggests that tariffs should be imposed only on specific products.
Answer: A
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Answer the following statement(s) true (T) or false (F)
1. The major reason education leads to higher wages is due to signaling. 2. Attending college can be seen as an individual’s attempt to raise their level of human capital. 3. Since mowing ones lawn is not done at their workplace, it is viewed as a use of their leisure time and thus (somewhat paradoxically) falls into the category of leisure. 4. One deficiency of labor-leisure indifference curve analysis is that because indifference curves are always tangent to the worker’s budget line, the model can not explain why some people choose not to work. 5. A firm’s marginal revenue product of labor equals the marginal product of labor times the cost per unit of the labor.
Why is it that all of our wants cannot be satisfied?
A) because of shortages B) because we cannot seem to decide what we really want C) because other people try to change your mind about what you want D) because limited resources mean all the goods we want cannot be obtained
The nominal interest rate is 5 percent and the inflation rate is 2 percent. What is the real interest rate?
a. 7 percent b. 2.5 percent c. 10 percent d. 3 percent
When the price is $2
A. quantity supplied is greater than quantity demanded and, therefore, price must rise to get to equilibrium.
B. quantity supplied is less than quantity demanded and, therefore, price must fall to get to equilibrium.
C. quantity demanded is greater than quantity supplied and, therefore, price must rise to get to equilibrium.
D. quantity demanded is greater than quantity supplied and, therefore, price must fall to get to equilibrium.