Which of the following is the basis for the consumption effect of a tariff imposed on imported automobiles?
A. The net increase in the availability of the domestic automobiles for the consumers owing to higher prices
B. The net increase in the government revenue by taxing the domestic consumers who buy the imported automobiles
C. The decline in the purchase of the product due to the increase in its price
D. The net increase in the consumption of imported automobiles by the domestic consumers
Answer: C
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The "Public Choice" school of economists argue that:
a. the invisible hand of the market is inefficient in allocating resources to their best uses. b. the government often does not take correct economic decisions as it is run by self-interested politicians. c. the government takes correct decisions as it is run by conscious and educated individuals. d. the market fails to maximize social efficiency. e. the government is a non-profit making organization which works to maximize social efficiency.
Government unemployment insurance tends to
What will be an ideal response?