For the infant-industry argument for tariffs to be appropriate, it is necessary that
A) the industry be deemed essential by the government.
B) the government can identify which industries will eventually be able to compete with more established foreign producers.
C) only industries that currently are operating efficiently will be protected.
D) the country has access to the most modern production techniques.
Answer: B
You might also like to view...
The real business cycle model focuses on how
A) the labor theory of value is the best measure of value of a good or service. B) productivity shocks explain fluctuations in real GDP. C) wage and price stickiness explains fluctuations in real GDP. D) the Federal Reserve should adopt a monetary growth rule.
Cyclical unemployment is positive when
A) the inflation rate is positive. B) the economy is at the peak of a business expansion. C) the natural rate of unemployment exceeds the actual rate. D) the actual unemployment rate exceeds the natural rate.
Which of the following is NOT true of an incomplete contract?
a. It discourages parties from acting opportunistically. b. It increases the cost of negotiation. c. It allows renegotiation among parties if certain events occur. d. It contains provisions for terminating the contract if certain events occur.
Which of the following factors can change continually in such a way as to bring about continued increases in aggregate demand?
A) autonomous consumption B) autonomous investment C) government spending D) the money supply E) all of the above