If the infant industry argument is used to protect an industry that has already matured, then
A) consumers lose because they will pay a price for a product that is above the world price.
B) consumers lose because they will pay a price for a product, which is less than the world price.
C) stockholders lose because the firm cannot compete with other firms.
D) no one loses.
Answer: A
You might also like to view...
Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she decides to charge each customer according to his or her willingness to pay
What is Julie's total revenue and how many hours of service will be purchased? A) 1 hour and her total revenue = $7 B) 4 hours and her total revenue = $39 C) 4 hours and her total revenue = $28 D) 5 hours and her total revenue = $35
The quantity theory of money and prices asserts that
A) increases in the money supply lead to inflation. B) increases in the money supply lead to an increase in the velocity of money. C) increases in the money supply lead to a decrease in the velocity of money. D) increases in the money supply will increase real GDP.
In the United States, all levels of government together spend about
a. one out of every three dollars paid for finished goods and services b. half of the dollars paid for defense spending c. the same amount as private citizens and corporations d. one out of every three dollars paid for education e. 80 percent of their budgets on transfer payments
Which of the following is a public good?
a. An economics lecture. b. A television set. c. Higher education. d. Housing. e. Clean air