Critique the infant industry or the labor argument for protection
What will be an ideal response?
Critique of the labor argument largely rests on the confusion between nominal wage rate differences and productivity wages.
Critique of the infant industry argument is based on 1 ) the rent seeking and misapplication of what it means to be an "infant" industry, 2 ) the government's ability to correctly identify such industries vs. the market's ability to do so, 3 ) the protection creates disincentives for efficiency and low-cost production.
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If union demands result in a surplus of labor in some industries, the resulting
a. increased demand for labor in the nonunion sector drives nonunion wages up b. decreased demand for labor in the nonunion sector drives nonunion wages down c. increased supply of labor in the nonunion sector drives nonunion wages down d. increased supply of labor in the nonunion sector drives nonunion wages up e. decreased supply of labor in the nonunion sector drives nonunion wages up
If the exchange rate between the Canadian dollar [C$] and the U.S. dollar [$] on January 6, 2010 is C$/$ = 1.03, then the exchange rate $/C$ will be:
a. 0.67. b. 0.79. c. 0.97. d. 1.97. e. 1.33.
Which of the following creates a positive social rate of return?
a. Providing a free secondary education to the public b. Paying higher wages to workers with college degrees c. Offering government grants to private universities d. Earning an advanced degree at a public university
Refer to the information provided in Figure 33.4 below to answer the question(s) that follow.
Figure 33.4Refer to Figure 33.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. With free trade domestic production is
A. 0. B. 100. C. 150. D. 300.