question
_____ is an amount of money paid directly to domestic producers to make them more competitive with foreign imports.
answer
Subsidy
question
How do trade barriers affect supply and price of a good?
answer
They will cause the price to increase while causing a decrease in supply.
question
Identify the scenario where there is NO embargo.
answer
Tariffs on Japanese cars
question
Define protectionism.
answer
A protection to businesses at home through trade barriers.
question
How can a government best establish trade barriers?
answer
By using their legal system to limit market access.
question
What theory seeks to explain that individuals who act in their own self-interest might deplete a common resource important to a whole group of people?
answer
Tragedy of the commons
question
Why might a government decide to grant a monopoly in a heavily regulated industry?
answer
It is cheaper to regulate only one company and ensure it acts in a business-friendly fashion.
question
How did increased regulation impact the mortgage market after 2008?
answer
It was more difficult for consumers to get mortgages.
question
What economic problem occurred in 2008 that led to the passage of the Dodd-Frank Act?
answer
The Great Recession
question
Economic regulators are responsible for overseeing which of the following industries?
answer
Both the financial sector and the utility sector
question
Which of the following is an example of a regressive tax?
answer
Lottery tickets
question
Which of these institutions has the authority to levy taxes in the United States?
answer
State governments
question
What type of income tax system is currently in place at the federal level in the United States?
answer
A progressive tax system
question
If the United States radically overhauled the tax code and established a flat tax, what type of tax structure would it have?
answer
Proportional tax
question
What effect do taxes levied at the federal and state levels have on consumer prices?
answer
Taxes cause prices to increase.
question
Which of the following was NOT a benefit of destroying 'Ma Bell'?
answer
Increased market share for AT&T
question
What was the largest company to be busted by the Sherman Antitrust Act of 1890?
answer
Standard Oil
question
Which of the following is NOT an effect of a trust?
answer
Increased consumer confidence
question
Why was American Telephone and Telegraph able to remain a trust as late as the 1980's?
answer
They monopolized use of their long-distance phone lines.
question
Which president had a reputation as a trust-buster?
answer
Theodore Roosevelt
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