The use of a tariff provides monopoly protection since
A) it allows more imports into the country.
B) it reduces competition from imports by raising the import price.
C) it reduces exporters' profits.
D) it expands tax credits.
B
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The deadweight loss from a tax
A) is the tax revenue the government collects when people die. B) is the split of a tax between the amount paid and the amount collected. C) equals the amount collected as revenue from the tax. D) is called the excess burden of the tax. E) equals the amount collected as revenue from the tax plus the excess burden of the tax.
Which of the following is NOT an example of a regional trade bloc?
A) the North American Free Trade Agreement B) the European Union C) the Asian-Pacific Trade Agreement D) Mercosur
Identify the public good in the following
a. A small library with a limited collection of books b. A crowded children's park in your neighborhood c. The visit to a museum which charges a nominal entry fee d. The scenic view of the ocean from a beach
Suppose velocity is constant, but real GDP is not independent of the money supply. If this is the case, a 10 percent increase in the money supply will:
A. have an unpredictable effect on inflation. B. raise inflation by less than 10 percent. C. raise inflation by more than 10 percent. D. raise inflation by 10 percent.