According to the cumulative investment table above, if the real interest rate falls from 20% to 16%, then:
A. $180 billion of additional investments will be undertaken
B. $330 billion of total investments will be undertaken
C. $30 billion of additional investments will be undertaken
D. $440 billion of total investments will be undertaken
C. $30 billion of additional investments will be undertaken
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If Toni has an absolute advantage in both sewing and ironing when compared to Tom, then
A) they might benefit from trading, but we need more information to determine in which task they should specialize. B) neither Toni nor Tom can benefit from trading with each other. C) Toni should specialize in sewing, and Tom should specialize in ironing. D) Toni cannot benefit from trading with Tom, but Tom can benefit from trading with Toni. E) Tom cannot benefit from trading with Toni, but Toni can benefit from trading with Tom.
Which of the following describes the infant industry argument for protectionism?
A) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets. B) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field. C) An industry must be protected in its early stages of development so that firms can compete with government-subsidized foreign competition. D) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defense in emergencies.
In response to a temporary increase in government spending, the representative consumer consumes
A) more and takes more leisure. B) more and takes less leisure. C) less and takes more leisure. D) less and takes less leisure.
Typical structure characteristics of interest to Industrial Organization researchers include
a. Barriers to entry b. Product differentiation among firms c. The number and size distribution of firms d. All of the above