The argument a tariff on imported goods produced by an unlimited industry could benefit the members of the domestic union is
A) the national defense argument.
B) the protect domestic jobs argument.
C) the infant industry argument.
D) the dumping argument.
Answer: B
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Average cost for the firm in Table 8.1
A) cannot be determined from the information given. B) is upward-sloping for all output values shown. C) is constant for all output values shown. D) is downward-sloping for all output values shown. E) is U-shaped.
Suppose a U.S. investor buys a Canadian government bond with a face value of Canadian dollar (CAD) 100 and an annual yield of 8.8 percent. Which of the following statements is true?
a. At maturity, the dollar return from the Canadian bond will be $108.8, regardless of what happens to the exchange rate. b. The Canadian bond will yield the same dollar return from the time of purchase to the time of maturity. c. An American will make a profit on the Canadian bond only when the CAD-denominated return is higher on the Canadian bond than the dollar-denominated return on a comparable U.S. bond. d. The dollar return on the Canadian bond depends on the dollar price of the Canadian dollar at the time of maturity. e. The decision to buy the Canadian bond should be based solely on the CAD interest return and not on changes in the exchange rate.
Given an opportunity cost of 10 bicycles per 1 sewing machine in Germany and 20 bicycles per 2 sewing machines in Hungary,
a. Neither country has a comparative advantage in the production of either good. b. Germany has a comparative advantage in the production of sewing machines. c. Germany has an absolute advantage in the production of sewing machines. d. Hungary has an absolute advantage in the production of bicycles. e. Hungary produces more bicycles than Germany does.
Suppose that the total expenditures for a typical household in 2015 equaled $2,500 per month, while the cost of purchasing exactly the same items in 2017 was $3,000. If 2015 is the base year, the CPI for 2017 equals:
A. 1.00 B. 0.83 C. 1.20 D. 1.25