The most efficient way to encourage the growth of an infant industry is through
A) a voluntary export restraint.
B) a tariff.
C) a subsidy.
D) an import quota.
C
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In a competitive economy with no government sector: a. goods with spillover benefits will not be produced at all. b. there will be too few public goods produced
c. goods with spillover costs will be underproduced. d. too few resources be allocated to each industry.
All of the following are properties of typical indifference curves except
a. higher indifference curves are preferred to lower ones. b. indifference curves are downward sloping. c. indifference curves do not cross. d. indifference curves are bowed outward.
The political problems associated with fixing the CPI are that
A. Social Security taxes would rise. B. Social Security benefits would rise. C. personal income taxes would fall. D. benefits to the poor would fall.
If the price of a car in the United States is $26,000, and the exchange rate between the dollar and the British pound rises from $1.50 to $2.00 per pound, then the price of the American car in Britain will
A. remain the same. B. fall. C. rise. D. be irrelevant, because the British government will impose restrictions on imports from the United States.