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.
C
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Labor-market discrimination is evident when
a. wages of individuals differ on the basis of some recognizable attribute that is unrelated to productivity. b. wage rates differ for similar jobs. c. consumers prefer to shop at some stores, and not at others. d. wages reflect workers' human capital.
Exhibit 7-19 Long-run perfectly competitive industry
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As shown in Exhibit 7-19, assume that a perfectly competitive industry is in long-run equilibrium at point A. If the demand curve shifts from D1 to D2, the adjustment sequence between points will be:
A. A to B, then back to A. B. A to D, then back to A. C. A to D, then to C. D. A to B, then to C.
Refer to the above figure. If flow (1) is the cost businesses pay to the resource market, then:
A. (4) is the flow of goods and services. B. (6) is the flow of money income. C. (7) is the flow of revenue. D. (2) is the flow of productive resources.
A market situation in which a large number of firms produce similar but not identical products is called
A. oligopolistic behavior. B. pure monopoly. C. monopolistically competitive. D. perfectly competitive.