For infant industry tariff protection to be valid requires that
A) the tariff must be allowed to last forever.
B) only industries that currently are producing efficiently should be protected.
C) government officials must predict which industries will eventually be able to compete with more established foreign producers.
D) the industries protected must have substantial monopoly power in the absence of foreign competition.
C
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An economy is experiencing a recession and policy makers are considering using discretionary fiscal policy to eliminate the recessionary ga
What will be an ideal response?
Given two economic systems, A and B, if economy A has a absolute advantage in the production of widgets, then
A) fewer inputs are necessary to produce widgets in economy A than in economy B. B) economy A must give up less of all other goods to produce widgets than economy B. C) economy A is less efficient in the production of widgets than economy B. D) economy A would not benefit from the specialization of production.
Assume Coke and Pepsi are substitutes. Holding other things constant, if the price of Coke increases
a. Demand for Pepsi falls b. Demand for Pepsi increases c. Quantity demanded for Pepsi falls d. Quantity demanded for Pepsi increases
The economy can produce 15X and 15Y, 10X and 20Y, 5X and 25Y, or 0X and 30Y. It follows that opportunity cost of 1X is ___Y.
What will be an ideal response?