List and describe three arguments that help to explain why nations sometimes restrict trade. Does everyone agree with these arguments?
The arguments that have been given to support trade restrictions are the national-defense argument, the infant-industry argument, the antidumping argument, the foreign-export-subsidies argument and the saving-domestic-jobs argument. Everyone does not accept these arguments for trade restrictions as valid. Critics maintain that the arguments can be (and are) abused and these arguments may be motivated by self-interest.
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The cost of producing an additional unit of a good or service that is borne by the producer of that good or service is the marginal
A) external cost. B) private cost. C) social cost. D) public cost. E) None of the above answers is correct.
Individuals become dependent on welfare payments because the benefits that have to be given up in order to become employed are higher than the benefits from working
a. True b. False
Increases in the overall price level:
A. increases people's dollar-denominated wealth. B. generally has no effect on spending. C. result in people reducing their consumption. D. result in people increasing their consumption.
Refer to the diagram. If this industry is purely monopolistic, the profit-maximizing price and quantity will be:
A. P 3 and Q 3 .
B. P 1 and Q 1 .
C. P 2 and Q 2 .
D. indeterminate on the basis of the information given.