Which of the following is an unintended side effect of protectionist policies to protect domestic jobs?
a. The consumers are paying higher prices to the protected industry, so they will purchase less product from that industry, and jobs are lost in the protected industry.
b. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will lose sales to foreign producers who do not need to pay the higher price.
c. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will increase sales from foreign producers.
d. The consumers are paying higher prices to the protected industry, so they will purchase more products from unprotected industries, and jobs are gained in the unprotected industry.
b. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will lose sales to foreign producers who do not need to pay the higher price.
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Answer the following statement(s) true (T) or false (F)
1. Marginal Revenue measures the slope of the Demand curve. 2. Marginal Cost measures the slope of the total cost and total variable cost curves. 3. The Marginal Benefit of consuming an additional unit of a good tends to increase as the number of units consumed increases. 4. If a firm increases production from 120 units to 130 units, then its Marginal Revenue is 10.
If the economy may be likened to a biological organism, then the financial system may be thought of as the ________
A) brain B) stomach C) lungs D) feet
Villagers in Xiaogang, China, produced more rice than those in surrounding villages because:
a. they had better farmland. b. they were given better seeds. c. they were able to keep the output they produced individually. d. they made each family responsible for a certain, higher quota of rice production. e. they had common ownership over the rice produced.
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Price index falls, and real GDP rises. b. Price index falls, and real GDP falls. c. Price index falls, and the change in real GDP is uncertain. d. The change in price index is uncertain, and real GDP rises. e. The change in price index is uncertain, and real GDP falls.