A tariff is better than a quota because
a. it does not distort trade as much.
b. quotas are inflexible.
c. tariffs produce tax revenue.
d. quotas hurt domestic producers; tariffs hurt foreign producers.
c
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The classical model makes little distinction between the long run and short run because
A) wages and prices adjust so fast that the economy is quickly moving towards the long run. B) the model has not been fully developed yet. C) current changes influence the long run, so it is not possible to plan for the future. D) the classical economists knew that we are always operating in the short run.
To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?
A) the flexibility of U.S. labor markets and the efficiency of the U.S. financial system B) the high level of unemployment benefits the United States pays relative to other countries like Canada C) the strict government rules in the United States that regulate a firm's ability to hire and fire workers D) the low rate of job mobility in the United States