Which of the following is correct? i. U.S. total surplus decreases when the United States exports a good. ii. U.S. total surplus decreases when the United States imports a good. iii. U.S
total surplus increases when the United States imports a good and when it exports a good. A) i only
B) iii only
C) i and ii
D) ii only
E) None of the above because the U.S. total surplus does not change as a result of trade
B
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A tax of 20 percent per unit of imported garlic is an example of a(n)
A) specific tariff. B) ad valorem tariff. C) nominal tariff. D) effective protection tariff. E) a disadvantageous tariff
The lower portion of the circular flow model contains factor markets in which households provide:
a. labor, money, and machines. b. savings, spending, and investment. c. natural resources, labor, and capital. d. output of all final goods and services produced.
Which of following provisions in an insurance policy may be economically efficient if policy holders can control small claims but not large ones?
a. Vigilance provision b. Non-price exceptions c. Co-payment provisions d. Liquidated damages
Which statement shows income as a factor affecting demand?
a. A factory in town gives its employees bonuses, and mall purchases increase. b. Many people move into a suburb because it has affordable housing. c. Advertising convinces people that jeans make them look overweight. d. Meteorologists predict a winter with lots of snow, so shovel sales rise.