A tariff has the effect of giving ________ a larger share of the domestic market
a. domestic consumers
b. foreign consumers
c. domestic producers
d. foreign producers
e. no producers or consumers
C
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When the government levies a $100 million tax on people's income and puts the $100 million back into the economy in the form of a spending program such as new interstate highway construction, the
a. tax multiplier magnifies the effect of taxes on the level of national income b. tax, then, generates a $100 million decline in national income c. level of national income expands by $100 million d. effect on national income is uncertain e. tax multiplier overpowers the income multiplier, triggering a rollback in national income
To be binding, a price floor must be set above the equilibrium price
a. True b. False Indicate whether the statement is true or false
Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any price above $5 per unit:
A. there will be an excess demand for the product. B. there will be an excess supply of the product. C. the quantity supplied of the product will be less than the quantity demanded of that product. D. there will be a shortage of that product.
Acts as an umpire to make sure the market operates smoothly
What will be an ideal response?