If the U.S. imposed a quota on motorcycle imports from Japan it would lead to a _____ quantity imported, and a _______ quantity produced in the U.S.
A. lower; higher
B. higher; lower
C. lower; lower
D. higher; higher
A. lower; higher
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A "flat tax" on personal income, in which the same tax rate is applied to every dollar of income earned by each taxpayer, is an example of
A) a regressive tax. B) a proportional tax. C) a progressive tax. D) a value-added tax.
The optimal level of air quality
a. is always zero b. occurs when the marginal social cost of air quality exceeds the marginal social benefit c. is greater if the marginal social benefit curve of air quality shifts rightward d. occurs when positive externalities are eliminated e. eliminates the common pool problem
Risk pooling:
A. lowers the costs of catastrophes when they occur. B. reduces the chances of catastrophes happening. C. allows individuals the peace of mind that they will never have to pay the full expense of a catastrophe if it hits them. D. All of these statements are true.
If a central bank were required to target inflation at zero, then when there was a positive aggregate supply shock the central bank
a. would have to increase the interest rate. This would move unemployment closer to the natural rate. b. would have to increase the interest rate. This would move unemployment further from the natural rate. c. would have to decrease the interest rate. This would move unemployment closer to the natural rate. d. would have to decrease the interest rate. This would move unemployment further from the natural rate.