A problem encountered when implementing an "infant industry" tariff is that
A) domestic consumers will purchase the foreign good regardless of the tariff.
B) the industry may never "mature."
C) most industries require tariff protection when they are mature.
D) the tariff may hurt the industry's domestic sales.
E) the tariffs fail to protect the domestic producers.
B
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In Figure 11.3, if the MPS is 0.25 and the distance between points C0 and C1 is 200, then the distance between points y0 and y1 must be
A) 50. B) 200. C) 400. D) 800.
Government policies which reduce the price of education increase ________ in the AK growth models or increase ________ in the production function for new ideas in the two-sector growth model
A) the capital stock; the productivity of researchers B) the efficiency index; the size of the labor force C) the proportion of the labor force devoted to research; the capital stock D) the productivity of researchers; the size of the labor force
Which one of the following would create a demand for a foreign currency and supply of dollars in the foreign exchange market?
a. the spending of French tourists in the United States b. the purchase of Japanese automobiles by American consumers c. the sale of U.S. computer equipment to a French buyer d. the purchase of a U.S. shoe factory by a Mexican investor
The marginal revenue that would be derived from producing the fourth unit of output is
A. $24.
B. $22.
C. $20.
D. $18.