What must a government know for the infant industry argument to be a valid reason for imposing tariffs?
What will be an ideal response?
The government must be able to determine what industries will eventually be able to survive without protection, but cannot survive initially without protection. Hence, they would need to know a great deal about technology in the industry, input prices, world demand for the good, and many other things.
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Given an annual interest rate of 5 percent, what is the present value of receiving $2,000 in one year?
A) $1980.19 B) $1950.25 C) $1934.89 D) $1,904.76
Everything else equal, the more rivals a firm has, the
A. less kinked is its demand curve. B. closer is its equilibrium price to its average variable costs. C. more differentiated is its product from rivals’ products. D. more elastic is its demand curve.
The amount of money received in a particular period adjusted for changes in purchasing power is called:
A. nominal income. B. real income. C. a cost-of-living index. D. consumer surplus.
Economic benefits to nations in a currency union will be larger whenever:
A) the volume of transactions between the nations is larger and there is a greater degree of economic integration. B) the volume of transactions is smaller but there is a greater degree of economic integration. C) trade and financial flows between the nations are erratic. D) financial integration is lower but cultural integration is higher.