Arguments in support of protectionism (and against free trade) include all of the following EXCEPT
A) new and troubled industries need to be protected until they acquire sufficient strength to compete equally against their foreign counterparts.
B) jobs at home should be protected from cheap foreign labor.
C) protectionism increase total domestic consumption possibilities.
D) national security interests require that nations retain the ability to produce vital materials at home and avoid dependence upon potential enemies.
Answer: C
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As a firm increases its output, its average total cost decreases. This is an outcome of:
A) the Law of Demand. B) economies of scale. C) diseconomies of scale. D) the Law of Diminishing Returns.
In the United States, the overall level of prices more than doubled during the
a. 1950s. b. 1960s. c. 1970s. d. 1980s.
Conditional cash transfer programs are programs in which:
A. financial support is given only to people who have paid into the program for a minimum amount of time. B. financial support is given only to people who engage in certain actions. C. financial support is given only to people who agree to pay it back at reduced interest to the government in the future. D. None of these is true.
Collusion in oligopoly is difficult to achieve because:
A. it is prohibited by law and every firm has an incentive to cheat given that others follow the agreement. B. it is prohibited by law. C. every firm has an incentive to cheat given that others follow the agreement. D. firms usually take care of consumers' interests as a decision priority.