A possible reason a nation might impose a protectionist policy such as a tariff is to:
A. increase the level of imports.
B. protect an infant industry from foreign competitors.
C. encourage specialization in the good in which the nation has a comparative advantage.
D. slow domestic production.
Answer: B
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Monopolistically competitive firms do not differentiate their products by:
A. changing the products' physical characteristics. B. selling products at different locations. C. offering different levels of service that come with a product. D. charging different prices to different groups of consumers.
Assume Alan's budget constraint is demonstrated by line A in the graph shown. Which of the following could cause Alan's budget constraint to change to line B?
A. The price of movie tickets could have increased. B. The price of books could have increased. C. The price of books could have decreased. D. The price of movie tickets could have decreased.
An oligopoly created because of economies of scale is called a
A) natural oligopoly. B) legal oligopoly. C) public oligopoly. D) monopolistic oligopoly. E) scale oligopoly.
Based on the above information, at what price does the firm consider shutting-down?
a. $25 b. $0 c. $15 d. $10