Discuss national defense, infant industry, and strategic trade as arguments for protection.
What will be an ideal response?
National defense arguments can be made for certain products, such as oil, but the danger is that these arguments will be extended toward nondefense-related industries such as watches. The infant industry argument that young industries should be protected is rarely valid, since many industries must start in the red before being successful. The strategic planning argument asserts that we may need to protect our industries by retaliating for other countries’ transgressions. But if retaliation escalates, all parties lose.
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The concept of economic rent applies to
A. all wage and salary earners. B. no wage or salary earners. C. only owners of real estate. D. people with rare valuable skills.
What type of economic research do analysts at investment banks conduct?
What will be an ideal response?
The Lorenz curve shows what portion of total money income is accounted for by
A) different proportions of a country's households. B) only the wealthiest citizens. C) only poor people. D) taxpaying citizens only.
Our money supply has _____ basic jobs to perform.
A. one B. two C. three D. four