During the 1960s, U.S. steel firms argued they needed tariff protection because Germany and Japan were using new mills to make steel since their old mills were destroyed in World War II. Essentially, this argument is a form of the
A) infant-industry argument.
B) anti-dumping argument.
C) countering foreign subsidies argument.
D) national defense argument.
Answer: A
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In the North-South model, how are "basic factors" distinguished from "advanced factors," and what are the implications for growth and development possibilities?
What will be an ideal response?
Changes in aggregate demand
A) could be caused by changes in the spending decisions of the households, businesses, the government, and foreigners. B) are very uncommon. C) are unlikely to change quickly in response to economic events. D) are primarily based on changes in firms' abilities to produce products. E) are not affected by changes in government policies.
Assume the market price is greater than average total cost at the perfectly competitive firm's profit-maximizing level of output
In this case, the firm is earning positive economic profits, which act as an incentive for new firms to enter the market. Indicate whether the statement is true or false
The statement in a newspaper that "consumer prices rose last month by 1 percent, and if this trend continues, the annual rate of inflation will be 12 percent for the year" is an example of:
a. The fallacy of composition b. Loaded terminology c. A positive economic statement d. A normative economic statement