Which of the following is the rationale behind the infant industry argument for import restrictions?
a. Import restrictions allow new industries, which have cost disadvantages, to compete with bigger firms from abroad.
b. Import restrictions prevent foreign firms from selling low-quality raw materials to new domestic industries.
c. Import restrictions help protect industries whose existence, owners claim, is vital to the security of the nation.
d. Import restrictions prevent foreign firms to engage in unfair practices such as dumping, or selling their products below the cost of production.
a
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Cyclical unemployment exists when
A) frictional and structural unemployment is zero. B) real national income exceeds potential income. C) real GDP exceeds potential GDP. D) real GDP is less than potential GDP.
Suppose than an economy has output Y = A , that Y equals $42 trillion, capital K is $64 trillion, and labor L is 125 million workers. Given this information, what is the closest approximation of total factor productivity A?
A) less than 0.01 B) around 0.25 C) roughly 0.33 D) close to 0.4 E) exactly 144
Someone who has been temporarily laid off and is looking for work in the meantime is known as a ______.
a. job loser b. job leaver c. reentrant d. new entrant
When the U.S. exchange rate rises, the trade deficit will:
A. be balanced by an increase in net exports. B. remain unaffected. C. usually rise, too. D. usually fall.