Fundamentals of Economics

Multiple choice

6. The idea that lowering taxes in a high tax environment would actually raise tax revenue

a. is credited to an economist named Aurthur Laffer

b. is credited to an economist named Robert Griffin III

c. is best described as Keynsian economics at its best

d. has never in United States history been implemented

7. When the world price of a good or service exceeds the domestic price (from the domestic country's perspective)

a. that's usually an indicator of a need to clost the borders

b. conditions of comparative advantage do not exhist

c. this is an indication of importing opportunities

d. this is an indication of exporting opportunities

8. A tarriff is

a. always works and benefits consumers most

b. is a form of government similar to socialism

c. is a tax on goods produced abroad

d. is similar to a sheriff, except they do not wear badges openly

9. A common argument for trade protection is

a. labor union protection

b. infant industry argument

c. to limit the influx of illegal aliens

d. to re-elect the sitting president

10. The current trade agreement between The United States, Canada, and Mexico

a. North American Tax and Duty Free Zone

b. USMCA

c. Trans Pacific Partnership

d. Paris Climate Accords