The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.
a. true
b. false
b. false
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The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. The U.S
Department of Justice would classify the market for cookies in Eatsweetland as A) competitive. B) uncompetitive. C) moderately competitive. D) monopolistic.
Which of the following is NOT a reason people tolerate tariffs and quotas?
A) Ignorance B) Their personal jobs depend on tariffs and quotas. C) Costs may be hidden and hard to quantify. D) Costs of the policy are spread over a large number of people. E) The marginal expenses to fight the protection outweigh the personal marginal costs of the protection.
Why might a company use barter rather than money to make a transaction?
A. Money is economically efficient for large transactions, but barter is preferred for smaller transactions. B. Money requires a coincidence of wants but barter is more direct. C. Barter is generally more efficient than money exchanges. D. Barter can enable two firms to trade when their cash flows are limited.
To correct the budget deficit for inflation, we should
A. multiply the budget deficit by the price deflator for GDP. B. subtract interest payments from tax revenues. C. divide the budget deficit by nominal GDP. D. divide the budget deficit by the consumer price index.