Which of the following is an example of a pure public good?
a. A bus.
b. A mall.
c. A teddy bear.
d. An army.
e. An automobile.
d
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Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200Assume the small-country model is applicable. If the world price of the product is $6 and a tariff of $1 per unit is applied to imports of the product, then the tariff would generate government revenues of
A. $1,200. B. $400. C. $600. D. $800.
The American Revolution, the Civil War (1861–65) and World War I (1914–18)
(a) diverted U.S. resources from peace-time, private uses and toward war-related uses. (b) encouraged the efficient allocation of resources. (c) increased long-term investment opportunities. (d) resulted in the excessive contraction of money to finance war efforts.
Governments choose to use voluntary export restraints (VERs) rather than tariffs because
A. voluntary export restraints do not generate any welfare loss in the importing country. B. tariffs more obviously violate the international rules of the World Trade Organization (WTO). C. the increase in the price of the imported good in the domestic market is lower in the case of a VER than a tariff. D. voluntary export restraints have the potential to generate higher revenue.
Monetary policy actions are determined by the
A. President of the United States. B. New York Federal Reserve Bank. C. Federal Open Market Committee. D. all of these