Other things equal, a tariff is:
A. superior to an import quota for Americans because a tariff increases the profits of foreign
producers.
B. inferior to an import quota for Americans because a tariff increases the profits of domestic
producers.
C. superior to an import quota for Americans because a tariff generates revenue for the U.S.
Treasury.
C. superior to an import quota for Americans because a tariff generates revenue for the U.S.
Treasury.
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When a tax on output is imposed to internalize the external costs of pollution, the supply curve shifts down by the amount of the tax
Indicate whether the statement is true or false
"Monetarism" advocates a monetary policy
A) at the full discretion of the Fed. B) that fixes the growth rate of money. C) that fixes a constant short-term interest rate. D) that fixes the growth rate of real GDP. E) that fixes the unemployment rate.
Which of the following will increase aggregate demand in the United States?
A. a higher price level B. an increase in the real interest rate C. an increase in wealth due to a substantial appreciation in the value of stocks D. a decrease in real income in Japan and Western Europe
If depreciation (consumption of fixed capital) exceeds gross domestic investment, we can conclude that:
A. nominal GDP is rising but real GDP is declining. B. net investment is negative. C. the economy is importing more than it exports. D. the economy's production capacity is expanding.