Briefly describe some of the current policies the United States has in place to limit both fairly and unfairly traded goods
What will be an ideal response?
The United States has laws against dumping and foreign export subsidies. In both cases, tariffs are imposed to offset the reduction in price below fair market value. The escape clause allows for temporary protection from fairly traded goods that harm or threaten to harm domestic industry.
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Adam Smith and David Ricardo worked together to develop the law of comparative advantage.
Answer the following statement true (T) or false (F)
A pure monopoly most likely results in productive inefficiency because at the profit-maximizing level of output ________.
A. MC is not at its minimum level B. P is greater than AVC C. ATC is not at its minimum level D. MR is not zero
An increase in government purchases of $200 billion will shift the aggregate demand curve to the right by
A) less than $200 billion. B) more than $200 billion. C) $200 billion. D) None of the above are correct. This policy shifts the long-run aggregate supply curve.
The practice of a group of firms negotiating a uniform price and fixing agreed-upon market share in order to limit competition is
a. legal in all states but illegal in Washington, D.C. b. called conglomerate behavior c. seldom successful because entry into the industry cannot be denied d. called collusion e. less profitable for each firm than maximizing profit individually