Critique the infant industry or the labor argument for protection
What will be an ideal response?
Critique of the labor argument largely rests on the confusion between nominal wage rate differences and productivity wages.
Critique of the infant industry argument is based on 1 ) the rent seeking and misapplication of what it means to be an "infant" industry, 2 ) the government's ability to correctly identify such industries vs. the market's ability to do so, 3 ) the protection creates disincentives for efficiency and low-cost production.
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Central planning is a key characteristic of which economic system?
A) free market B) price system C) command and control D) mixed economic system
The BLS has recently made explicit adjustments in its CPI calculations to control for
A. purchase location adjustments. B. consumer electronics quality improvement issue. C. substitution between goods. D. food safety quality issues.
If the university administration plans to hike tuition charges in the hope of increasing tuition revenues, we know
A) they are assuming an elastic demand. B) they are assuming an inelastic demand. C) they cannot succeed because of the law of demand. D) they must be running in the red. E) they will only succeed if more students can be enrolled at no cost.
For developing countries, one of the more effective ways to become more developed is
A) to invest in secondary schools. B) to invest more in the military. C) to increase trade barriers. D) to reduce direct foreign investment.