Which of the following is not a rationale for protectionist policies?
A. Improve the welfare of domestic consumers.
B. Protect domestic workers from foreign competition.
C. Help domestic firms establish a world monopoly in a particular market.
D. Protect an infant industry from foreign competitors.
Answer: A
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Explain three ways we can use macroeconomic analysis
What will be an ideal response?
The present value of $100 to be received in a year is
A) less than $100 and falls as the interest rate rises. B) less than $100 and rises as the interest rate rises. C) more than $100 and falls as the interest rate rises. D) more than $100 and rises as the interest rate rises.
In 2010 the federal government reduced the Social Security tax withholding rate from 12.4 percent (6.2 percent on both the employer and employee) to 8.4 percent (4.2 percent on both the employer and employee) on the wages of all workers. If the supply of labor is relatively inelastic when compared to the elasticity of the demand for labor, the burden of this tax will
a. continue to fall primarily on employees. b. continue to fall primarily on employers. c. be divided equally between employees and employers. d. change from primarily falling on employees to employers.
The XYZ Computer Company has a monopoly over the production of a specialized color printer. The XYZ Computer Company will find it profitable to reduce output as long as marginal revenue
A. is positive. B. is greater than marginal cost. C. is less than marginal cost. D. equals marginal cost.