According to the infant-industry argument, protection should be withdrawn from an infant industry when the companies in the industry
A) are listed on the domestic stock exchange.
B) become profitable.
C) double their sales revenues.
D) reach a sufficient size to compete with foreign firms.
Answer: D
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If the demand for Home exports decreased abroad, the Home fall in output would be greatest
A) if the decrease was temporary and the exchange rate was fixed. B) if the decrease was temporary and the exchange rate was floating. C) if the decrease was permanent and the exchange rate was fixed. D) if the decrease was permanent and the exchange rate was floating. E) if the decrease was permanent and the exchange rate was high.
Supply and demand curves both
a. have negative slopes b. have positive slopes c. relate quantities to prices d. reflect the actions of producers e. reflect the actions of consumers
In order to maximize profits, a firm should decrease output whenever total cost exceeds total revenue
a. True b. False
The government wants to improve the irrigation system for farmers by setting up wells. The farmers, in return, would have to pay a sum of $100 each. Many farmers are aware that even if they do not pay, other farmers will pay for it and the required sum of money would easily be collected. This problem can be avoided by: a. taking the help of the law
b. forming an association and putting social pressure to make sure all the farmers pay. c. imposing an extra tax on the farmers who do not pay for the irrigation system. d. preventing all the farmers from using the well.