Some nations try to nurture and encourage new firms with lots of promise, so they protect them from foreign competition. This is called the _________ argument for trade protection.
a. home nation unemployment
b. level playing field
c. efficiency
d. infant industry
Ans: d. infant industry
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If firms are protected by substantial barriers to entry, short-run profits can turn into long-run profits
Indicate whether the statement is true or false
Under a system of fixed exchange rates, what happens if a country's currency is overvalued?
A) The central bank loses official reserve assets. B) The central bank gains official reserve assets. C) The currency appreciates. D) The exchange rate rises.
Refer to the table below. If these are the only three price options for a bushel of corn, what is the expected value of the price of a bushel of corn?
The above table provides the possible prices for a bushel of corn next year along with the associated probabilities (in percent).
A) $2.50
B) $2.78
C) $2.25
D) $3.00
Since the costs of negative by-products are not deducted,