The long-run social benefits of infant industry protection are more likely to be realized if
(a) investors believe that tariff barriers are permanent.
(b) investors believe that tariff barriers are transitory.
(c) tariff barriers increase over time.
(d) tariff barriers are replaced with quotas over time.
B
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Refer to the scenario above. If Jill values fairness, ________
A) she will not accept any offer made by Jack B) Jack should make the lowest possible offer to Jill C) she will accept the offer when Jack offers $25 D) Jack should not play the game
A firm encounters its "shutdown point" when:
A) average total cost equals price at the profit-maximizing level of output. B) average variable cost equals price at the profit-maximizing level of output. C) average fixed cost equals price at the profit-maximizing level of output. D) marginal cost equals price at the profit-maximizing level of output.
In which zone does the total physical product reach it maximum value?
a. Increasing marginal return b. Negative marginal return c. Diminishing marginal return d. Decreasing total physical product
Figure 16-2
Suppose that Figure 16-2 shows the effects of reducing the budget deficit by raising taxes. If authorities do not want real GDP to fall, monetary policy must
a.
become sufficiently more expansionary to restore the aggregate demand curve to D0D0.
b.
contract aggregate demand to be consistent with deficit-reducing fiscal policy.
c.
not lower interest rates and thwart the goal of a balanced budget.
d.
become more contractionary to lower the interest rate and spur investment.