Explain the infant industry argument
What will be an ideal response?
The infant industry argument is an argument for tariff protection for a domestic industry that is relatively new. If there are economies of scale or benefits from experience, the industry may not have a chance to develop and secure either experience or economies of scale if they face competition from established foreign firms. The argument is that after a period of time, the industry would be able to compete without tariff protection.
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If a cigarette manufacturer sells its cigarettes to a distributor and contractually restricts the distributor from reselling the cigarettes outside the state of New York, this is an example of ________.
A) a tying arrangement B) territorial confinement C) a requirements contract D) exclusive dealing
If the multiplier is 5, the MPC is
A. .1. B. .2. C. .5. D. .8.
Suppose that the Federal Reserve Open Market Committee adheres to the ideas expressed by ________. If the economy moves into a recession, the Fed would recommend that the federal funds target rate decrease as long as the inflation rate did not rise above
the publicly announced goal for inflation. A) the gold standard B) the monetarist school of thought C) inflation targeting D) the Taylor Rule
Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. 
Figure 13.9 Refer to Figure 13.9. If Ohio Edison engages in rent-seeking behavior to maintain their monopoly, the true ________ is BEC and the portion of area FGBE that pays for the rent-seeking behavior.
A. net social gain from monopoly B. net social cost of monopoly C. consumer surplus D. producer surplus