The antebellum period was characterized by many changes in tariff ...

[krzymel]

The antebellum period was characterized by many changes in tariff rates. What best describes the effect of removing a tariff on foreign cotton textiles?
 a. The total supply curve of textiles would shift back.
  b. The price of both foreign-made and domestic-made textiles would decrease.
  c. The price of foreign-made textiles would decrease and the price of domestic-made textiles would increase.
  d. The total (foreign and domestically produced. quantity of textiles purchased in the US would decrease.
  e. The real income of textile consumers would decrease.

Question 2

During the three decades immediately following World War II,
 a. conservative forces successfully blocked any expansion of New Deal-type programs.
  b. the prevailing liberal ideology led to the passage of legislation that increased Social Security benefits, created Medicare, and increased the minimum wage.
  c. disillusionment with government led to deregulation of airlines and other industries.
  d. most policy makers and the general public rejected Keynesian policies.

[anyusername12131]

Answer to Question 1

b. The price of both foreign-made and domestic-made textiles would decrease. (Note: This is the exact opposite of the problem in the Economic Insight).

Answer to Question 2

b. the prevailing liberal ideology led to the passage of legislation that increased Social Security benefits, created Medicare, and increased the minimum wage.

[krzymel]

Correct answers!

[anyusername12131]

Great! Please up vote