The infant industry argument has a normative economic basis because
A) clearly, all industries need to be protected.
B) protected industries are selected on a factual basis.
C) the government must decide which industries should be protected.
D) political corruption is the only deciding factor.
Answer: C
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Nonunion labor is a substitute for union labor, so when the minimum wage ________, the demand for union labor ________
A) rises; decreases B) decreases; increases C) decreases; decreases D) rises; increases E) rises; remains the same
If an individual can produce a good or service with a lower opportunity cost than another individual, then he or she is said to have the comparative advantage
a. True b. False Indicate whether the statement is true or false
A trade war is said to occur when each country takes steps to make it harder for other countries to sell into its markets.
Answer the following statement true (T) or false (F)
An example of a normative statement is:
A) The rate of unemployment is 4 percent. B) A high rate of economic growth is good for the country. C) The federal government spends half of its budget on national defense. D) People with health insurance tend to spend more on health care than those who are uninsured.