A basic problem with the infant-industry argument is that:
A. most industries need protection when they are mature, not when they are first established.
B. the amount of the tariff is unlikely to have much impact on the success of an infant industry.
C. political pressure will likely prevent the withdrawal of the tariff when the industry matures.
D. domestic consumers will continue to buy the foreign products anyway, regardless of the tariff.
Answer: C
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Which of the following policies would NOT affect the natural unemployment rate?
A) a reduction in minimum wages B) an increase in public-service employment C) an increase in subsidized private employment D) a reduction sales taxes
High interest rates
A. increase the profitability of capital investments. B. decrease the opportunity costs of capital investments. C. increase the opportunity costs of capital investments. D. decrease the profitability of current sales.
The activity known as shirking is LEAST likely to occur when:
A. all workers are paid the same wage rate. B. firm ownership is separated from the managerial control. C. the earnings of a worker are closely tied to the worker's output. D. workers are not monitored.
What has been the range of the decline in real output during recessions in the U.S. between 1950 and 2009?
A. -0.2 percent to -3.7 percent B. -5.1 percent to -9.8 percent C. -10.4 percent to -14.6 percent D. -15.0 percent to -19.9 percent