Which of the following is a valid reason for protecting an industry?
A) The industry is unable to compete with low-wage foreign competitors.
B) Protection penalizes lax environmental standards.
C) Protection keeps richer nations from exploiting the workers of poorer countries.
D) None of the above reasons is a valid reason for protection.
D
You might also like to view...
In a budget line/indifference curve figure, how do you identify the best affordable combination of any two goods?
What will be an ideal response?
Assume that at the current market price, a perfectly competitive firm's profit-maximizing level of output yields total revenues that are just equal to total costs. Which of the following statements applies to this firm?
A) The firm should shut down right now. B) The firm should continue to operate in the short run to minimize losses, but shut down if things don't improve over the long run. C) The firm is earning zero economic profit and should continue to operate. D) The firm should increase its explicit costs to reduce its tax burden.
Understanding the supply and demand model facilitates
A) greed. B) charity. C) happiness. D) prediction.
When a positive externality is present in a market, total surplus is:
A. higher when buyers only consider private costs. B. lower when buyers consider social costs. C. lower when buyers only consider private costs. D. None of these statements is true.