Which of the following is true of a tariff?
a. It is a tax levied by the government on domestic production of goods and services.
b. It is a quantitative restriction on imports imposed by the government.
c. It is a monetary benefit received by exporters from the government.
d. It is a monetary benefit received by importers from the government.
e. It is a tax on import and export levied by the government.
e
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Which of the following will be the best example of a monopoly firm?
a. The US Bank b. The Bank of America c. National City Bank d. The Federal Reserve e. Washington Mutual Funds Bank
If people follow the rule of rational choice they will choose options that they think will:
a. create more average benefits than average costs b. create more additional costs than additional benefits c. create equivalent additional benefits and additional costs d. create more additional benefits than additional costs
When two variables move in the same direction, the curve relating them is downward sloping, and we say the variables are negatively related
a. True b. False Indicate whether the statement is true or false
When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely, this will cause business firms, ceteris paribus, to
A. increase investment because the higher corporate profits tax will increase the return on any investment. B. decrease investment because they would expect lower benefits from investment. C. not change their investment plans because higher corporate profit taxes will not change the demand for their product. D. plan to increase investment in the future to compensate for the higher tax rate.