In economic terms, tariffs are preferred to quotas because
A) domestic manufacturers gain more producer surplus.
B) there is less loss of consumer surplus.
C) tariffs are easier to administer.
D) quotas create a greater production inefficiency.
E) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.
E
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Suppose the economy is in long-run equilibrium. In a short span of time, there is a large emigration of skilled workers, a major depletion of oil fields, and a major new regulation limiting electricity production. In the short run, we would expect
a) the price level to rise and real GDP to fall. b) the price level and real GDP both to rise. c) the price level to fall and real GDP to rise. d) the price level and real GDP both to stay the same.
The United States and __________ are two major markets-oriented systems
A) Germany B) Japan C) France D) the United Kingdom