If the infant industry argument is used to protect an industry that has already matured, then
A. consumers lose because they will pay a price for a product that is above the world price.
B. stockholders lose because the firm cannot compete with other firms.
C. consumers lose because they will pay a price for a product, which is less than the world price.
D. no one loses.
Answer: A
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A problem associated with the principal-agent relationship is
A) imperfect information. B) perfect information. C) the low costs of monitoring behavior. D) none of these choices.
Suppose, as in the 1970's in the U.S., that demographic groups which typically have higher unemployment rates become a larger percentage of the labor force. Would this have any effect on the long-run Phillips curve?
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
In the circular flow model, the value of total production for an economy ________ the value of total expenditures on final goods and services.
A) equals B) is less than C) may be greater than or less than D) is greater than