The infant industry argument says that
A. tariffs should be imposed to allow a new industry in a country to get established.
B. imports should target new products from other countries to take advantage of the transmission of new ideas.
C. dumping should be allowed in order to establish a presence of an industry that has previously not had a presence in another country.
D. countries should produce and trade goods according to their comparative advantage.
Answer: A
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In the U.S. economy, the quantity of donuts produced each day is determined by the
A) U.S. Food and Drug Administration. B) U.S. Department of Health and Human Services. C) Donut Association of America. D) individual decisions of thousands of donut makers.
A lower price level combined with a decrease in real GDP occurs when the
A) short-run aggregate supply curve shifts rightward. B) short-run aggregate supply curve shifts leftward. C) aggregate demand curve shifts rightward. D) aggregate demand curve shifts leftward.
The economist A.W. Phillips published a famous article in 1958 in which he showed a
a. negative correlation between the rate of unemployment and the rate of inflation. b. positive correlation between the rate of unemployment and the rate of inflation. c. negative correlation between the rate of unemployment and the rate of interest. d. positive correlation between the rate of unemployment and the rate of interest
When economic losses exist in the cereal market, for example, this is an indication that
A. Society's scarce resources are being used in the best way. B. Not enough firms are producing cereal (assuming that the market is perfectly competitive). C. The goods and services that society is giving up (the opportunity cost) are more valuable than the cereal being produced. D. The WHAT to produce question is being answered efficiently.