Tariffs can never raise a country's standard of living. True or false? Explain carefully
What will be an ideal response?
This statement is true for a small country and can be illustrated using standard welfare analysis. It is false for large countries as is illustrated in Figure 6.9 and Table 6.5 in the text.
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If a demand curve for a good is perfectly inelastic, then the seller could
A. increase price and not change the number of units purchased. B. ignore the effects of costs on its profits. C. rely on buyers to look for other products if it increases price. D. sell more units by advertising.
Suppose a person has a discount rate of zero. This implies she
A) places no value on the future. B) places no value on the present. C) values the present and the future equally. D) would not lend money at any positive interest rate.
A checkable and debitable banking account is
A) a liability to a commercial bank. B) an asset to a commercial bank. C) a liability to the household or firm that has the account. D) an asset for the Federal Reserve System.
The Skandusky Downtown Development Corporation (SDDC), a nonprofit entity, was accused by local taxpayers of being overstaffed and too lavishly accommodated for its purpose of achieving its community development goals. This accusation is an argument that the SDDC
a. is managed by stakeholders b. staff is following the MC = MR rule c. is an example of the Lester-Machlup controversy d. is engaged in empire building e. is minimizing community losses