1.Whether a tax is shifted forward or backward depends on the price elasticities of demand and supply.
True or False
2. The effect of a tax is the same thing as the incidence of the tax.
True or False
3. If the cost of collecting a tax is low relative to the revenue generated, the tax is said to be economical.
True or False
4. If trade between the United States and Canada were totally free of restrictions, the incomes of most Canadian workers would decrease.
True or False
5. The most-favored-nation clause was created in the
a. Trade Expansion Act of 1962
b. Marshall Plan
c. Reciprocal Trade Agreements Act of 1934
d. Canadian-American Trade Act
6. CAFTA is an organization comprised of six South American countries.
True or False
7. The principle of comparative advantage is associated with
a. restricting consumer choices
b. greater production at higher prices
c. specialization and exchange
d. comparing the efficiency of alternative tariffs
8. In dollar value, the United States is the largest importer in the world
True or False
9. 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.
True or False
10.The Byrd Amendment seeks to penalize foreign exporters who dump products into the United States.
True or False