Protection provided to the infant industries is rarely withdrawn because:
a. the costs of withdrawing protection outweigh the benefits.
b. the industries begin to experience diseconomies of scale.
c. it leads to a loss of government revenue.
d. the industries produce goods which are close substitutes of the imported goods.
e. the larger and more successful the industry becomes, the more political power it wields.
e
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When a country allows trade and becomes an exporter of goods both domestic consumers and domestic producers benefit
a. True b. False Indicate whether the statement is true or false
Nations will attract investment and its citizens will engage in productive activities when the institutions and policies of that country
a. encourage market exchange. b. reward innovation. c. protect people and their property. d. all of the above.
The marginal propensity to consume plus the marginal propensity to save is always
A) equal to zero. B) greater than zero but less than one. C) equal to one. D) greater than one.
Outside lags for monetary policy occur because:
A. firms must change investment plans before monetary policy can be effective. B. it takes time to identify a problem. C. once a problem is diagnosed, it still takes time to implement policy changes. D. once changes are finally diagnosed and implemented, policies are immediately effective.