Question

1. The iron law of price is that it must rise before it can fall when a shortage occurs.

   True

   False

2. Most economists agree that tariffs and import restrictions make most people worse off.

   True

   False

3. The majority of economists in the U.S. support which of the following?

   		dropping most if not all trade barriers
   		greater immigration to the U.S.
   		reducing or eliminating most agricultural subsidies
   		all of the above
   		none of the above

4. Free market economists (classical) are more likely to be allied with Republicans than are Keynesian economists who are more likely to be allied with the Democrats.

5. True

   False

Answer 1

1. The statement is TRUE that the iron rule of price states that price must rise before it can fall when a shortage occurs.

2. The given statement is TRUE that most economists agree that tariffs and import restrictions make most people worse off. It happens because tariffs and other import restrictions increases the price and Consumers become worse off.