Suppose that the United States decided to subsidize a major competitive effort by the semiconductor industry to bring to market the next generation computer chip. Under the current rules of the WTO and GATT, the U.S. effort is
A) allowed as long as the subsidies are a small percent of the total cost.
B) allowed as long as the subsidies do not involve a direct payment to the industry.
C) not allowed.
D) allowed as long as the subsidies do not succeed in creating a new product.
C
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Which of the following are required for economic growth?
i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices A) i only B) ii and iii C) ii only D) i and iii E) i and ii
Which of the following trade agreements, which took effect in 1994 and was implemented over a 15-year period, eliminates all tariffs and other trade barriers between its members?
A) North American Free Trade Agreement B) Asian Pacific Economic Cooperation C) General Agreement on Tariffs and Trade D) World Trade Organization
In what way does land differ from other inputs such as labor and capital?
What will be an ideal response?
In the long run, if price is less than average cost
A) there is an incentive for firms to exit the market. B) there is no incentive for the number of firms in the market to change. C) there is profit incentive for firms to enter the market. D) the market must be in long-run equilibrium.