Which of the following is an important difference between tariffs and import quotas?
a. Tariffs affect goods leaving the country to be sold, and import quotas affect goods coming in.
b. The government receives revenue from tariffs but does not collect money for import quotas.
c. Import quotas lower prices and increase consumer surplus, whereas tariffs do the opposite.
d. Tariffs support the growth of domestic industry, and import quotas help foreign producers.
b. The government receives revenue from tariffs but does not collect money for import quotas.
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The banking system has just experienced an increase in deposits of $50,000. The currency drain ratio is 20 percent and the desired reserve ratio is 10 percent. What does the money multiplier equal?
A) 4.00 B) 3.33 C) 0.25 D) 10.00
The best example of a frictionally unemployed worker is one who: a. has been looking for work for 27 weeks or longer
b. is laid off during a recessionary period in the economy. c. is in the process of voluntarily switching jobs. d. is discouraged and not actively seeking work. e. cannot find a job that matches with his skills.