ch 16 econ...11/9/18

What type of income tax system is currently in place at the federal level in the United States?

A progressive tax system

Define protectionism.

A protection to businesses at home through trade barriers.

Economic regulators are responsible for overseeing which of the following industries?

Both the financial sector and the utility sector

How can a government best establish trade barriers?

By using their legal system to limit market access.

Which of the following is NOT an effect of a trust?

Increased consumer confidence

Which of the following was NOT a benefit of destroying 'Ma Bell'?

Increased market share for AT&T

Why might a government decide to grant a monopoly in a heavily regulated industry?

It is cheaper to regulate only one company and ensure it acts in a business-friendly fashion.

How did increased regulation impact the mortgage market after 2008?

It was more difficult for consumers to get mortgages

Which of the following is an example of a regressive tax?

Lottery tickets

If the United States radically overhauled the tax code and established a flat tax, what type of tax structure would it have?

Proportional tax

What was the largest company to be busted by the Sherman Antitrust Act of 1890?

Standard Oil

Which of these institutions has the authority to levy taxes in the United States?

State governments

_____ is an amount of money paid directly to domestic producers to make them more competitive with foreign imports.

Subsidy

Identify the scenario where there is NO embargo.

Tariffs on Japanese cars

What effect do taxes levied at the federal and state levels have on consumer prices?

Taxes cause prices to increase.

What economic problem occurred in 2008 that led to the passage of the Dodd-Frank Act?

The Great Recession

Which president had a reputation as a trust-buster?

Theodore Roosevelt

Why was American Telephone and Telegraph able to remain a trust as late as the 1980's?

They monopolized use of their long-distance phone lines.

How do trade barriers affect supply and price of a good?

They will cause the price to increase while causing a decrease in supply.

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?

Tragedy of the commons