Which of the following is NOT true about a tariff?
A. It is a tax.
B. It is a barrier to entry in a market.
C. It affects the amount of supply of imported goods.
D. It leads to a natural monopoly.
Answer: D
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The hypothesis suggesting that people combine the effects of past policy changes on economic variables with their own judgment about the future effects of current and future economic policy is referred to as the
A) passive expectations hypothesis. B) adaptive expectations hypothesis. C) rational expectations hypothesis. D) active expectations hypothesis.
Answer the following statements true (T) or false (F)
1) In the short run, managers are limited because at least one input is fixed. 2) The long-run marginal cost curve intersects the minimum point on the long-run average cost curve. 3) The long-run profit-maximizing quantity is found by setting the long run marginal cost equal to the long-run average cost. 4) In response to a decrease in the market demand, to maximize short-run profits, managers of perfectly competitive firms will decrease production by employing fewer fixed inputs. 5) At its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $4 and its long-run average cost is $3, it should expect the market price of its product to fall.
If an economy's population grows at 3 percent and real GDP grows at 2 percent, then:
a. per capita real GDP is declining. b. the economy's standard of living is increasing. c. per capita real GDP is negative. d. per capita real GDP is growing. e. the economy is experiencing unemployment.
If the Fed aims to achieve a level of unemployment below its natural rate, it must follow time-inconsistent policies
a. True b. False Indicate whether the statement is true or false