Which of the following is an example of a forward linkage?
a. A government spending program reduces the nation's level of unemployment.
b. A compact disc industry creates a demand for CD players.
c. The development of a shoe industry creates a demand for a leather industry.
d. An increase in the population increases the demand for food.
e. New educational facilities improve the literacy rate of the population.
B
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If the United States imposes a tariff on foreign chocolate, how are foreign producers of chocolate affected?
A) Their supply is unaffected because the quota must be met by U.S. producers. B) They export less to the United States. C) Their supply increases because they have to pay the tariff. D) The tariff has no effect on foreign producers because U.S. consumers must pay the higher price. E) They earn more profit because their chocolate sells for a higher price.
Compared to the poverty rate for non-Hispanic whites, the poverty rate for Hispanics is almost _______.
Fill in the blank(s) with the appropriate word(s).
When a per unit tax is imposed on the sale of a product of a monopolist, the resulting price increase will
A) always be less than the tax. B) always be more than the tax. C) always be less than if a similar tax were imposed on firms in a competitive market. D) not always be less than the tax.
Advocates of discretionary economic policy are most likely to be
A. Keynesians. B. supply-side economists. C. rational expectationists. D. Classical economists.