Which of the following probably best explains why trade restrictions are imposed even if the costs to consumers are greater than the benefits to protected industries?
a. Indifference on the government's part to the interests of domestic workers
b. A desire to make other countries suffer
c. Successful lobbying by consumers
d. Successful lobbying by employers and workers
e. The government's preference to safeguard the interest of the producers at the expense of the consumers
d
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A significant problem of a dual exchange rate system is that it
(a) is difficult to administer. (b) leads companies to pursue rent-seeking behavior. (c) promotes black markets. (d) all of the above. (e) none of the above.
If the fixed costs can be ignored, a relatively good approximation of the correct transfer price is
a. average costs b. average fixed costs c. average variable costs d. the market price
If a firm increases output and its average total cost rises, then the firm is experiencing economies of scale
a. True b. False Indicate whether the statement is true or false
If AD and AS increase at exactly the same rate, the result will be
a. demand-side inflation. b. supply-side inflation. c. falling prices. d. stable prices.