If the U.S. (a large country) imposes a tariff on its imported good, this will tend to
A) improve the terms of trade of the United States.
B) have no effect on terms of trade.
C) improve the terms of trade of all countries.
D) cause a deterioration of U.S. terms of trade.
E) raise the world price of the good imported by the United States.
A
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In a simple economy (no government), the vertical distance between the consumption function and the expenditure schedule measures
A. undesired inventory depletion. B. planned investment C. undesired investment. D. unintended investment.
What are price shocks? Why were they not included in the original formulation of the Phillips curve? Why were they added to the modern Phillips curve?
What will be an ideal response?
Which of the following is true of marginal revenue for a monopolist that charges a single price?
a. P = MR because there are no close substitutes for the monopolist's product. b. P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit. c. P < MR because the monopolist must decrease price on all units sold in order to sell an additional unit. d. AR = MR because there are no close substitutes for the monopolist's product. e. P = MR only at the profit-maximizing quantity.
The President receives economic policy advice from economists at each of the following except
a. the Council of Economic Advisors. b. the Department of the Treasury. c. the Congressional Budget office. d. the Department of Labor.