The welfare loss of a tariff equals that of a import quota that leads to the same level of imports
Indicate whether the statement is true or false
False. In the case of a tariff the government receives revenue which does not reduce welfare. With a quota this amount is often lost to foreign importers.
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International capital flows are purchases and sales of ____ across national borders
a. goods b. financial assets c. services d. commodities
George spent $20,000 to buy bonds issued by a public sector enterprise. According to a stockbroker, the amount spent by George is: a. saving
b. an investment. c. a tax to the government. d. a consumption expenditure.
In 1954, Mickey Mantle earned $21,000 playing for the New York Yankees. The CPI in 1954 was 26.9, and the CPI in 2010 was 218.06 . What is Mickey Mantle's 1954 salary in 2010 dollars?
A theory or a model
A) is a simplified, abstract view of reality. B) is based on each economist's value judgments. C) is a detailed analysis of what ought to be. D) captures all aspects of the real world.