Strategic trade policy
a. argues for protecting certain industries that benefit society but that may not thrive in a free trade environment
b. advocates quotas on imports of high-tech products
c. defends the use of tariffs to protect monopolistically competitive industries
d. has been used to justification protection of infant industries
e. explains why less developed countries export more raw materials than services
A
You might also like to view...
Individuals making decisions about how much to purchase of a product with an external benefit base their decisions on which of the following?
A) the price and marginal private benefit B) the economically efficient output C) the price and the marginal social benefit D) the size of the deadweight loss
Goods whose income elasticity of demand is greater than zero are _____
a. inferior goods b. normal goods c. substitute goods d. superior goods e. public goods
Flexible exchange rates:
A. impose a greater degree of discipline on the behavior of central banks than fixed exchange rates do. B. make it simpler to engage in international trade than fixed exchange rates do. C. give governments a greater degree of flexibility in monetary policy than fixed exchange rates do. D. produce smaller exchange rate fluctuations than fixed exchange rates do.
If product Y is an inferior good, a decrease in consumer incomes will:
A. Make buyers want to buy less of Product Y B. Not affect the sales of product Y C. Shift the demand curve for product Y to the left D. Shift the demand curve for product Y to the right