The case of Airbus, an airplane manufacturing consortium in Europe, which receives large subsidies from several European countries, best exemplifies which rationale for protectionist policies?
A. shielding workers from foreign competition
B. protecting infant industries
C. prevention of dumping in local markets
D. helping domestic firms establish monopolies in world markets
Answer: D
You might also like to view...
Marylou, whose utility of wealth curve is shown in the figure above, faces two options. Option A yields $200 for sure. Option B has a 0.3 probability of yielding $100, and a 0.7 probability of yielding $300. Marylou, who is
A) picks option A. B) picks option B. C) is indifferent between option A and option B. D) needs more information to make a choice.
A bank that wants to monitor the check payment practices of its commercial borrowers, so that moral hazard can be reduced, will require borrowers to
A) place a bank officer on their board of directors. B) place a corporate officer on the bank's board of directors. C) keep compensating balances in a checking account at the bank. D) purchase the bank's CDs.
The above figure shows the payoff to two firms in an industry deciding to make an investment in worker safety. The dominant strategy for each firm
A) is to do the opposite of the other firm. B) is to make the investment. C) is to not make the investment. D) does not exist.
Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max's current MRS = -0.8, then Max is at point
A) b. B) d. C) e. D) None of above.