The infant-industry argument is the only perfectly valid argument for protection
Indicate whether the statement is true or false
FALSE
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The number of logging firms increases. Which of the figures above best illustrates this change?
A) Figure A B) Figure B C) Figure C D) Figure D E) Figure A and Figure D
If net exports are negative
A) net foreign investment is positive. B) capital inflows must be less than capital outflows. C) net foreign investment is also negative. D) Both A and B are correct.
In a perfectly competitive market, a decrease in the market demand will ultimately lead to ________ firms in the market and a ________ market equilibrium quantity.
A) more; higher B) fewer; lower C) more; lower D) fewer; higher
When the supply of real loanable funds is upward-sloping and the demand for real loanable funds rises, complete crowding-out:
a. Occurs because private demand falls by the same amount that government borrowing rises. b. Does not occur because taxes rise with the increase in real GDP. c. Does not occur because new funds are supplied to the Real Loanable Funds Market as the real, risk-free interest rate rises. d. Occurs because private borrowers will increase the amount their loans as the real risk-free interest rate rises.