A lesson from the Brazilian experiment was that:
a. infant industry protection is almost never successful.
b. there are many determinants other than market price that also factor into an industry's success—firms had supplier difficulties and were hampered by excessive regulation.
c. government usually knows better than the market whether an industry has potential.
d. when politicians get involved, rational decisions and good business practices are more difficult.
Ans: b. there are many determinants other than market price that also factor into an industry's success—firms had supplier difficulties and were hampered by excessive regulation.
You might also like to view...
If Country A opens up their corn market to trade with the rest of the world and the global price of corn is lower than the equilibrium price of corn in Country A, then Country A will ________ corn, which will ________ consumer surplus, ________
producer surplus, and ________ total surplus. A) import; increase; decrease; increase B) import; decrease; increase; increase C) export; increase; decrease; increase D) export; decrease; increase; increase E) export; decrease; increase; decrease
Explain the relationship between real GDP and potential GDP during the two phases of the business cycle
What will be an ideal response?
Cigarette advertising on our nation's radio and television stations has been prohibited for more than the past three decades by federal law
What is curious about this law is that it came into being not just because of the lobbying efforts of American Medical Association but also by the tobacco industry. Use economic logic to explain this apparent paradox.
According to behavioral economics, advertising works because it:
A. provides useful information that improves consumers' ability to make decisions. B. exploits the self-serving bias. C. exploits the recognition heuristic. D. quickly communicates price changes that exploit the law of demand.