Which of the following statements reflects the belief of the critics of industrial policy?
a. The government allocates scarce resources more efficiently than markets
b. Industrial policy could evolve into a government giveaway program.
c. Industrial policy gives domestic industries a competitive advantage over important trading partners.
d. Industrial policy encourages unfavorable terms of trade with foreign countries.
e. Industrial policy overprotects the domestic producers.
b
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The above figure shows the Lorenz curves for four different countries. Which country has the most unequal distribution of income?
A) country A B) country B C) country C D) country D
In which of the following industries are the firms price-takers?
a. monopoly b. monopolistically competitive c. monopoly and monopolistically competitive d. perfectly competitive e. perfectly competitive and monopolistically competitive
When the price level goes up, the purchasing power of the dollar
A. varies directly with the interest rate. B. falls. C. remains constant. D. also increases.
Recently American Airlines started charging $15 for each checked baggage. Why did the company not charge $15 to $20 more per ticket and quietly avoid this publicity?
What will be an ideal response?