After one cow in Alberta, Canada was found with mad cow disease, the United States banned all imports of Canadian cattle and beef. This action is an example of:
A. a sanction.
B. a regulatory trade restriction.
C. a tariff.
D. a quota.
Answer: B
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Gerald is deciding what kind of light bulbs to install in the light fixtures in his new home. He has it narrowed down to compact fluorescent bulbs (CFLs) or LED bulbs. The CFLs will cost $350 and the LEDs will cost $900
Gerald estimates that the energy-saving benefits from the CFLs will be $750 and the energy-saving benefits from the LEDs will be $1,250. Based on these numbers, Gerald should purchase the A) CFLs because the cost is cheaper. B) CFLs because the the net benefit is greater. C) LEDs because the benefit is greater. D) LEDs because the net benefit is greater.
Typically, the most important determinant of private investment in an economy is
A) the inflow of foreign investment. B) the size of the capital account surplus. C) the size of the current account deficit. D) the outflow of private investment. E) the amount of domestic savings.
An effluent fee is imposed on a steel firm to reduce the amount of waste materials that it dumps in a river. Use the following two statements to answer this question:
I. The more easily factors of production can be substituted for one another (for example, capital can be used to reduce waste water), the more effective the fee will be in reducing effluent. II. The greater the degree of substitution of capital for waste water, the less the firm will have to pay in effluent fees. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
Both tariffs and quotas
a. benefit domestic consumers by lowering prices b. benefit domestic consumers by expanding consumption choices c. are illegal in the United States d. benefit domestic producers e. are policy tools that help bring about free trade