Which of the following is a basic problem with the infant-industry argument?
What will be an ideal response?
Political pressure will likely prevent the withdrawal of the tariff when the industry matures.
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The principle of comparative advantage states that a product should be exported by
a. the country with the lowest dollar cost b. the country with the lowest labor cost c. the country with the lowest opportunity cost d. the country that has more of that product e. all of the above
If the real risk-free interest rate rises, the:
a. Demand curve for real loanable funds rises. b. Demand curve for real loanable funds falls. c. Supply curve of real loanable funds falls. d. None of the above.
Which of the following is an accurate statement about the supply of money?
a. The money supply is almost completely elastic. b. Banks will try to maximize profits even if their money supply is below the desired level. c. The money supply is regulated by the central bank. d. The money supply curve is horizontal, other things being equal.
When the National Hockey League locked out the hockey players in an effort to negotiate a salary cap with the players' union, it was an example of conflict:
A. within monopolistic competition. B. between monopsony on the employers' side and competition on the union's side. C. within a bilateral monopoly. D. between unions and hockey fans.