The existence of marginal social benefits which are not marginal benefits for the industry producing the import substitutes
A) is an argument supporting free trade and non-governmental involvement.
B) is an argument supporting the use of an optimum tariff.
C) is an argument supporting the use of market failures as a trade-policy strategy.
D) is an argument rejecting free trade and supporting governmental involvement.
E) is an argument rejecting the domestic market failure concept.
D
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Why do policymakers have the goal of stable prices?
a. Stables prices always keep the economy in expansion b. Firms make too much money when prices are rising c. Inflation is always associated with wars d. Inflation imposes costs on society e. Inflation is always associated with trade deficits
The railroad expanded the size of our markets and therefore almost everything marketable, creating industries where none existed before. Joseph Schumpeter explained such an outcome as the result of
a. the upswing (or recovery) phase of a multi-investment cycle b. the upswing (or recovery) phase of an internal cycle c. the upswing (or recovery) phase of an innovation cycle d. an entrepreneurial revolution in U.S. industry e. the combination of immigration and capital deepening
Which of the following is not an example of moral hazard?
A. People take poor care of their health because they have health insurance. B. People drive recklessly because they have medical insurance. C. People don't lock their doors because they have theft insurance. D. All of these are examples of moral hazard.
The participation rate in the United States in 2010 was approximately equal to
A) 96%. B) 90%. C) 65%. D) 26%. E) 5%.