Explain why the government is often more responsive to producer interests than to consumer interests when it comes to the imposition of tariffs and quotas
Government is generally more responsive to producer interests than to consumer interests. This is because the benefits of tariffs and quotas are concentrated on relatively few producers and the costs of trade restrictions are spread over relatively many consumers. Therefore, the producers will lobby the government to obtain these gains from trade restrictions, while consumers will not lobby government to keep from paying the small additional (per person) cost that results from the tariffs and quotas. Hearing little, or no, opposition from the consumers, the politicians are likely to respond to the interests of the producers.
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According to your authors, a recessionary "bust" is
A) an inherent part of any market economy. B) a correction of the mistakes generated during the prior expansionary "boom." C) an event that can be successfully recovered through fiscal "stimulus" policies. D) identified by a rise in real GDP.
The total willingness to pay for a given number of units of a good or service is determined by multiplying the equilibrium price of the good by the number of units purchased
Indicate whether the statement is true or false