A problem with the infant industry argument is that
A) it is too restrictive in targeting new industries to protect.
B) it does not protect the most important new industries in a country.
C) it is almost impossible to eliminate the tariff once the industry matures.
D) it allows infant industries to mature so that tariffs can be eliminated.
C
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Kenneth Chay and Michael Greenstone examined the impact of reductions in air pollution since the passage of the Clean Air Act of 1970. Which of the following statements summarizes their findings?
A) In the two years following passage of the Act, fewer infants died than would have died if the Act had not been passed. B) The benefits of reducing the six main air pollutants in the two years following the Act greatly exceeded the costs. C) The marginal cost of reducing emissions of sulfur dioxide has increased over time as the marginal benefit of the reductions has increased. D) The marginal benefit of reductions in air pollution was less than the marginal cost.
When a competitive equilibrium is achieved in a market
A) the total net benefit to society is maximized. B) the total benefits to consumers are equal to the total benefits to producers. C) economic surplus equals the deadweight loss. D) all individuals are better off than they would be if a price ceiling or price floor was imposed by government.
Accounting costs
A) are historical costs. B) are replacements costs. C) usually include implicit costs. D) usually include normal profits.
Trade will be beneficial for a nation with a comparative advantage in producing a certain product.
Answer the following statement true (T) or false (F)