If aggregate demand shifts outward, the result will be inflation

Suppose a government imposes an import tariff that is too large and exceeds the tax required to completely shut down foreign imports. What is the impact of this mistake on the market outcome?

A) The impact is the same as intended --- there are no imports and the domestic market clears at the domestic equilibrium price. B) The domestic price rises above the domestic equilibrium price, which results in an excess supply. C) The domestic and foreign prices rise and cause consumer surplus losses in exporting and importing regions. D) The domestic price rises above the domestic equilibrium price, which results in an excess demand.

In which of the following ways is the private market sector similar to the public sector in terms of decision making?

A) Prices determine the demand for goods and services in each sector. B) There is competition for scarce resource in both sectors. C) Both sectors may use a type of "force" if necessary. D) Votes by individual voters are basically equal in importance with dollars spent by individuals on goods.