All but one of the following statements is used to justify protectionism. Which statement is not used to justify protectionism?
A) Free trade reduces employment by driving domestic firms out of business.
B) Free trade leads to higher prices for imported goods.
C) Trade restrictions are necessary to protect new firms until they can gain experience and become more productive.
D) A country should not rely on other countries for goods that are critical to its national defense.
B
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Which of the following is a reason why individual firms under perfect competition would not find it gainful to advertise their product?
A. The quantity of the product demanded is very large. B. Firms produce a homogeneous product. C. Firms do not make long-run profits. D. The market demand curve cannot be increased.
Refer to Figure 18.1. The opportunity cost of bicycles in the United States is
A) 1/3 of a hang glider. B) 1/2 of a hang glider. C) 3 hang gliders. D) 4 hang gliders.
The Fisher effect ________
A) comes from combining the Fisher equation and the classical dichotomy B) predicts that in the long run nominal rates will rise with increases in expected inflation C) shows that in high inflation we typically see high nominal interest rates D) all of the above E) none of the above
The supply of movie tickets at one theater's box office for this Saturday's 4:30 show of a new movie is
A) perfectly elastic until all seats are filled. B) unit elastic. C) perfectly inelastic. D) elastic.