11) When does the domestic government gain the MOST revenue?

A) when it imposes an import quota

B) when it negotiates a voluntary export restraint

C) when it imposes a tariff

D) The amount of revenue it gains is the same with a tariff and a voluntary export restraint.

12) A tariff hurts

A) the government by decreasing its revenue.

B) domestic producers who can't compete with cheaper imports.

C) consumers who will pay more for the imported good.

D) All of the above answers are correct.

13) Once supply side effects are taken into account, tax cuts for labor income can change

I.the supply of labor.

II.potential GDP.

A) I onlyB) I and II

C) II onlyD) neither I nor II

14) In January 2013 certain tax rates increased, which were predicted to increase the federal government's tax revenue. An increase in tax revenue ________ the government's budget deficit and over time thereby ________ the amount of government debt.

A) decreases; decreasesB) increases; decreases

C) increases; increasesD) decreases; increases

15) In January 2008, the unemployment rate was only 4.9 percent and real GDP was growing. But President Bush "acknowledged that Americans were 'anxious about the economy'." As a result, it was reported that "...the Bush administration and Congressional leaders, increasingly concerned about a possible recession, are moving closer to agreeing that an economic stimulus package is needed soon." In order for the package to be approved, the leaders in Washington implied that "... they might be able to put aside longstanding partisan differences."

www.nytimes.com 1/12/2008

Which of the following lags are government officials trying to avoid?

A) the law-making lagB) the impact lag

C) the recognition lagD) all of the above