According to the infant industry argument for trade protectionism
A) new industries are capable of competing with established rivals.
B) trade barriers must be used to protect domestic workers.
C) new industries need to be shielded from competition in the early stages of learning by doing.
D) tariffs imposed to aid new industries should never be removed.
C
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An industry's long-run supply curve shows
A) the relationship in the long run between market price and quantity supplied. B) greater than normal profit. C) how average productivity is changing. D) how the government determines the price of the product.
Gross income net of taxes is known as ________
A) Gross Domestic Product, or GDP B) disposable income C) Gross Domestic Product per capita D) retained earnings
Given a one-year Canadian bond with a yield of 8 percent, what will be the U.S. investor's rate of return at maturity if the Canadian dollar appreciates 10 percent against the U.S. dollar?
a. 2 percent b. 8 percent c. 10 percent d. 18 percent e. 25 percent
Which of the following examples shows the problem caused by the Fed’s lack of control over certain financial entities?
a. The Fed’s expansionary policy backfires because the government raises taxes. b. The Fed’s contractionary policy backfires because the estimated MPC is inaccurate. c. The Fed’s expansionary policy is neutralized by decreased consumer confidence. d. The Fed’s contractionary policy is counteracted by the policies of Chinese banks.