Tariffs provide domestic producers with incentives to be inefficient and operate on the basis of comparative disadvantage
Indicate whether the statement is true or false
True
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If the depreciation rate in an economy is 10%, and the capital stock in the economy is $1,000, the level of investment required to keep the economy at a steady state is equal to:
A) $110. B) $1,000. C) $250. D) $100.
All of the following, except one, would increase the demand for a particular model of a Ford automobile. Assume that this model is a normal good. Which is the exception?
a. an increase in buyers' incomes b. increased prices of other Ford models c. an expected future increase in the price d. an increase in the U.S. population e. a decrease in the price of steel
An important function of the U.S. Federal Reserve is to
a. set the debt ceiling. b. fund Congressional spending. c. control the supply of money. d. mint coins.
When the non exclusion aspect of a public good does not hold, but the nondiminishability component is present, how might the free rider problem be overcome and social efficiency achieved? Give examples from common social practice to illustrate your answer.
What will be an ideal response?