An import quota on a product protects domestic industries by:
A. reducing the foreign supply to the domestic market and, thereby, raising the domestic price.
B. increasing the foreign supply to the domestic market and, thereby, lowering the domestic price.
C. increasing the domestic demand for the product and, thereby, increasing its price.
D. providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production.
Answer: A
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Field (2003) claims that the period from 1929 to 1941 was the strongest period of what in U.S. history?
(a) Technological advancements (b) Monetary policy (c) Government action (d) Internationalization
An externality occurs whenever
A) private costs are the same as social costs. B) private costs are the same as internal costs. C) private costs diverge from social costs. D) private costs plus internal costs equal social costs.
Some economists have hypothesized that government bureaucracies seek to maximize:
a. social well-being. b. gross national product. c. fringe benefits for bureaucrats. d. their own budgets.
The international poverty line at $1.90 a day at purchasing power parity means that in each country the poverty line is the amount that will allow you to buy a basket of goods equivalent to what $1.90 would buy:
A. in the United States. B. in the richest of the countries that uses the index. C. in the poorest of the countries that uses the index. D. in the average economy of all the countries that use the index.