To be effective, infant industry protection requires
A) a national security externality.
B) to be extended indefinitely.
C) to be fair to existing producers.
D) a technology externality.
D
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Leaving out spending on consumer durables, the LCH and the PIH strengthens the case for policy ________ and the essential ________ of the private economy
A) rules, stability B) rules, instability C) activism, stability D) activism, instability
See the information in Scenario 4.4. From this demand curve, one can infer that:
A) Rock and Roll Trivia is an inferior good. B) computers and diskettes are substitutes. C) computers and diskettes are complements. D) computers are a normal good. E) A, B and D are true.
A table which shows the quantities of a particular good or service that producers are willing to sell (supply) at various prices is known as a supply:
A. schedule. B. figure. C. curve. D. graph.
Which of the following would be an external cost to the consumption of cigarettes?
a. Price of a pack of cigarettes. b. Loss of income resulting from extra missed days of work. c. Higher life insurance premiums due the practice of smoking. d. The loss in utility received because the smoker must stand outside her office building in the winter to smoke. e. Increased risk of cancer to the nonsmoking passengers in the smoker's carpool.