Question 8 2 points Save
The equality-of-sacrifice doctrine of taxation is based on the
increasing marginal utility of income
increasing marginal utility of government transfer payments
diminishing marginal utility of income
diminishing marginal utility of government transfer payments
Question 16 2 points Save
According to the equality-of-sacrifice doctrine, proportional income taxes impose a(n)
greater sacrifice on lower-income households
lesser sacrifice on lower-income households
greater sacrifice on higher-income households
equal sacrifice on all income levels
Question 22 2 points Save
The balance of payments is more like an income statement than a balance sheet.
Question 24 2 points Save
When Japanese investors who own hotels in Hawaii receive profits from their hotel operations, the receipt of such profits is recorded in the balance of payments as a
current account item
capital account item
settlement account item
Question 26 2 points Save
A nation on the gold standard would convert its currency into gold on demand.
Question 28 2 points Save
If the World Bank lends $10 million to the government of Fiji to develop new sugar cane fields, that would be seen on Fijiâ€™s international balance of payments as a
settlement account entry
capital account entry
service transaction in the current account
Question 29 2 points Save
In recent years, the IMF has altered its mission from one of providing long-term loans to developing nations to one of providing short-run financial support for dealing with balance-of-payments problems.
Question 30 2 points Save
When U.S. citizens travel on United Airlines to Japan, this constitutes a debit in the U.S. balance of payments.
Question 31 2 points Save
One factor that definitely did not contribute to the deficit in the U.S. balance of payments during 2005 was
the war in Iraq
sales of military equipment to foreign nations
the large federal government deficit in the United States
investments abroad by U.S. companies
Question 33 2 points Save
The United States devalued the dollar twice in the 1970s to alleviate the worldâ€™s dollar shortage.
Question 34 2 points Save
The 1992 plan of the European Union calls for
the complete mobility of economic resources across EU borders
establishing the British pound as the common currency
a central banking system in Zurich
a federal tax system similar to that of the United States
Question 36 2 points Save
encourages the optimum use of scarce resources
has no impact on use of scarce resources
prevents the optimum use of scarce resources
eliminates the scarcity of resources
Question 37 2 points Save
In a large and diversified economy like the United States, international trade usually hurts more people domestically than it helps.
Question 39 2 points Save
The only factor determining whether a country can develop a comparative advantage in production is the degree to which it has a highly skilled labor force.
Question 42 2 points Save
During times of recession, retaining the domestic economyâ€™s money at home is a valid argument for restricting imports.
Question 43 2 points Save
Since the Civil War, the international trade policies of the United States have been generally
for free trade
against free trade
infavor of free trade since the 1930s
increasingly against free trade since the 1930s
Question 45 2 points Save
If a tariff is used to protect U.S. jobs,
income is transferred from consumers to protected producers
national production and income increase
national production rises but income decreases
the effect is neutral since imports are replaced by domestic goods
Question 46 2 points Save
The most-favored-nation clause was created in the
Trade Expansion Act of 1962
Reciprocal Trade Agreements Act of 1934
Canadian-American Trade Act
Question 47 2 points Save
Consider a country that initially does not interfere with imports of a given good. If the government then imposes a tariff on that good, the supply curve
slopes upward less steeply
Question 48 2 points Save
Only in developing nations would one expect the value of either exports or imports to exceed 200 percent of gross national product.
Question 49 2 points Save
The revenue and protective purposes of a tariff are largely incompatible.
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