Protection of an infant industry should be withdrawn once that industry:
a. charges the same price as foreign competitors.
b. goes public on the stock exchange.
c. raises a large amount of sales revenue.
d. achieves sufficient size to compete with foreign firms.
e. earns enough profit as a result of the subsidies to remain in business.
d
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During a recession, the quickest way for the government to increase economic output would be to
A. increase government purchases and reduce taxes. B. reduce government purchases and increase taxes. C. reduce government purchases and reduce taxes. D. increase government purchases and increase taxes.
One of the components of the consumption function is induced consumption and this consumption is induced by changes in the
a. price level b. level of income c. interest rate d. level of investment e. level of saving
Creating a competitive and legal market for human organs for transplant would make the:
A. Supply curve vertical for such organs B. Demand curve vertical for such organs C. Supply curve slope upward to the right for such organs D. Demand curve slope upward to the right for such organs
Refer to the table below. Based on the given information, we see that:
The table below shows the output (either machines or wine) that each unit of input in France and Germany can produce:
A. France has a comparative advantage in producing wine
B. Germany has a comparative advantage in producing wine
C. Neither country has a comparative advantage in producing wine
D. Germany can produce machines at a lower opportunity cost than France