Suppose a quota on foreign-made automobiles is proposed in Congress. Which of the following groups ...

Suppose a quota on foreign-made automobiles is proposed in Congress. Which of the following groups is most likely to oppose the bill?
 a. American Automobiles Manufacturers. b. Consumers.
  c. American Steel Workers. d. United Auto Workers.

QUESTION 2

At the point where the disposable income line intersects the consumption function, saving:
 a. equals consumption.
  b. equals disposable income.
  c. is less than zero.
  d. is equal to zero.

QUESTION 3

A restriction on the quantity of a good that can be imported into a country is a(n):
 a. tariff. b. quota.
  c. embargo. d. restricted exchange rate.

QUESTION 4

A special interest group cannot impose its will on the majority because the perceived costs and benefits from government programs are the same for both groups.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

Which one of the following changes is consistent with a change in an economy's consumption function from C = 500 billion + 0.80Y to C = 700 billion + 0.80Y?
 a. An increase in disposable income taxes.
  b. An increase in interest rates
  c. A decrease in permanent disposable income.
  d. An increase in wealth.
  e. An increase in savings.

QUESTION 6

Cost-benefit analysis can be applied to individual decision-making and public choice theory.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

Imposing a restrictive quota on imported plasma TVs will:
 a. increase the price of the plasma TVs and decrease the quantity consumed.
  b. increase both the price of the plasma TVs and the quantity consumed.
  c. leave the price of the plasma TVs unchanged but decrease the quantity consumed.
  d. leave the price and the quantity consumed of plasma TVs unchanged, because domestic producers will expand production to make up for the reduction in imports

QUESTION 8

Given the consumption function C = 500 billion + 0.80Y, an increase in disposable income from 6,000 billion to 7,000 billion will cause consumption to increase by:
 a. 800 billion.
  b. 1,000 billion.
  c. 1,300 billion.
  d. 1,500 billion.
  e. 1,800 billion.