According to the infant industry argument, a new domestic industry needs protection because it has higher costs than established foreign competitors
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Refer to Figure 16-10. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?
A) buy Treasury bills B) increase government spending C) increase income taxes D) decrease the discount rate
Identify the correct statement
a. It is absolutely compulsory for the government to earn a profitable return on the money it earns by selling bonds. b. When government borrowing rises, interest rates decline, thereby driving up private investment. c. When interest rates rise, fewer number of corporations offer new bonds to raise investment funds. d. An increase in interest rate reduces the cost of borrowing by the firms. e. When interest rates fall, the firm's cost of raising funds through bonds increases.
If the unemployment rate rose from 6 percent to 7 percent,
A. Cyclical unemployment went up by more than 1 percent. B. Cyclical unemployment went up by 1 percent. C. Cyclical unemployment went up by less than 1 percent. D. Cyclical unemployment stayed the same. E. Cyclical unemployment went down.
One reason that firms hire labor at the point where w = MPN is
A. if w < MPN, the cost (w) of hiring additional workers equals the benefits (MPN) of hiring them, so they have the right number of workers. B. if w < MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers. C. if w > MPN, the cost (w) of hiring additional workers is less than the benefits (MPN) of hiring them, so they should hire more workers. D. if w > MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers.