Quotas are a much greater threat to competition than are tariffs because quotas preclude additional imports at any price.
Answer the following statement true (T) or false (F)
True
A tariff does not place a physical limit on the quantity of a good coming into the country while a quota does.
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If the structural deficit is $800 billion and the cyclical deficit is $600 billion, the actual budget deficit is
A) $200 billion. B) $800 billion. C) $1,400 billion. D) $600 billion. E) None of the above answers is correct.
Which of the following is an example of a positive economic statement?
a. The economy's real output increased at about 3 percent last year and the unemployment rate decreased. b. A central bank should not print too much money because inflation could result. c. Congress should stabilize the social security system by raising taxes now. d. The government farm products surplus should be distributed to the needy.