The following include several reasons that government might give for using a tariff on imports? Which is not valid, in the sense that the effect described will not happen.
a. To raise government revenue.
b. To help consumers.
c. To raise incomes of producers.
d. To respond to political pressures from import competing industries.
e. To increase national welfare at the expense of foreigners.
Ans: b. To help consumers.
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The "equality of opportunity" idea of fairness claims
A) a society should make the poorest as well off as possible. B) the results and the rules should both be fair. C) it's not fair if the rules aren't fair. D) private property can be transferred under government order. E) only a first-come, first-served system of allocating resources is fair.
Supply-siders argue that:
a. reductions in government spending cut infrastructure investment which hurts private sector investment. b. increases in government spending increase infrastructure investment which helps private sector investment. c. increases in government spending causes private sector investment to fall because the government pushes up interest rates. d. reductions in government spending cause private sector investment to fall because the government pushes up interest rates by borrowing. e. increases in government spending causes consumption spending to fall because the government purchases push up interest rates.
Special interest group K receives a 1/100th slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $200,000. In order for group K to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest
groups tend to press government for ______________ instead of ________________. A) $20,000,000; economic growth; transfers B) $2,000,000; transfers; economic growth C) $20,000,000; transfers; economic growth D) $20,000,000; transfers; economic growth E) none of the above
Which of the following taxes is most easily shifted?
A. a tax on imported rice B. an income tax that allows for no deductions of exemptions C. a uniform tax on land D. a retail sales tax