"Protection" is designed to help
a. firms whose relative inefficiency does not permit successful competition with imports.
b. workers who have very high productivity, and cannot survive against low-paid foreign workers.
c. government that needs revenue from tariffs and quotas to cover government spending.
d. firms that are highly efficient, and cannot survive against low-price foreign imports.
a
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The principle that states that what matters to people is the real value or purchasing power of money is the
A) marginal principle. B) spillover principle. C) real-nominal principle. D) principle of diminishing returns.
The above table gives the demand schedule for Billy Bob's BBQ ribs. The price elasticity of demand for Billy Bob's ribs over the price range of $3 to $1 is equal to
A) 4.00. B) 2.00. C) 0.50. D) 0.25.
Vertical contracts between manufacturers and retailers often aim to
a. Prevent the retailers from defeating upstream price discrimination through arbitrage b. Reward the manufacturer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the retailer's belief of the likely success of his product d. All of the above
Farmer Fanny sells her crops in a perfectly competitive market. If she produces 500 bushels for total revenue of $2,500 and if harvesting the 501st bushel would raise her total cost from $2,500 to $2,505, her
a. revenue will increase by $10 if she harvests the 501st bushel b. revenue will fall by $5 if she harvests the 501st bushel c. average fixed cost will rise if she harvests the 501st bushel d. profit will fall by $10 if she harvests the 501st bushel e. profit will remain unchanged if she harvests the 501st bushel