The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that
a. all industries will claim that they are infant industries in order to gain protection.
b. the protected industry will become too efficient and drive out foreign competition.
c. once in place, it is difficult to remove protection even as the industry matures.
d. it causes the goods that are produced in the protected industry to have lower prices.
C
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Which of the following statements is true of economic reasoning?
A) Economic reasoning hampers optimal decision making. B) Economic reasoning can only be used with normative choices. C) Economic reasoning implies that leisure time is free and costless. D) Economic reasoning helps people make the best use of scarce resources.
Monopolistically competitive firms have a:
A. perfectly elastic demand curve. B. downward-sloping demand curve. C. horizontal demand curve. D. perfectly inelastic demand curve.
Discuss and explain each of the instruments of monetary policy
What will be an ideal response?
The difference between what can be produced and consumed without specialization and trade and with specialization and trade is called:
a. comparative advantage. b. a tradeoff. c. marginal cost. d. opportunity cost. e. gains from trade.