What are the commonly used arguments for the use of tariffs?
Arguments for the use of tariffs include: tariffs help infant industries grow; tariffs can reduce domestic unemployment; new tariffs can help finance our international trade; and tariffs are necessary for national security reasons.
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If quota rights accrue to foreigners, then _____.
A) the domestic economy is better off with a quota than with a tariff B) the domestic economy is worse off with a quota than with a tariff C) consumer surplus and economic welfare increase D) production costs decrease E) part of the decrease in consumer surplus is redistributed to the domestic government
During a time when the inflation rate is increasing each year for a number of years, are adaptive expectations or rational expectations likely to give the more accurate forecasts? Briefly explain
What will be an ideal response?
Economic profit is the difference between a firm's revenue and its opportunity costs
Indicate whether the statement is true or false
If expected inflation were 3%, and the real interest rate was 6%, what sector would be worse off if the actual inflation rate turned out to be 5%
a. Businesses. b. Laborers. c. Both. d. None.