Author Question: According to this Application, tariffs in the United States are very high on textiles, apparel ... (Read 96 times)

RRMR · **on:** Jun 29, 2018

According to this Application, tariffs in the United States are very high on textiles, apparel items, and footwear, and within these categories tariffs are highest on the cheapest products.

These tariffs disproportionately impact lower-income households because
A) only lower-income consumers buy cheap, imported products.
B) these cheaper products tend to be purchased by lower-income consumers.
C) higher-income consumers can deduct the tariff from their income taxes.
D) higher-income consumers tend to refuse to purchase products with tariffs.

Question 2

In the figure above, when disposable income equals 10 trillion,

A) consumption expenditure is greater than disposable income but it is not possible to determine if consumers are saving or dissaving.
B) consumption expenditure is less than disposable income, so consumers are dissaving.
C) consumption expenditure is less than disposable income, so consumers are saving.
D) consumption expenditure is greater than disposable income, so consumers are saving.
E) consumption expenditure is greater than disposable income, so consumers are dissaving.