Protectionist legislation is often passed because:
a. employers in the affected industry lobby more effectively than the workers in that industry
b. both employers and workers in the affected industry lobby for protectionist policies.
c. trade restrictions often benefit domestic consumers in the long run, though they must pay more in the short run.
d. it helps to keep domestic prices at a relatively lower level.
b
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When the supply curve is flat, a tariff on imported goods
a. always increases the welfare of Americans. b. always decreases the welfare of American.. c. has no effect on the welfare of Americans. d. only affects the welfare of Americans if the goods are also made domestically .
When a firm hires 10 units of labor, 20 pens are produced. When it hires another unit of labor, the total output increases to 23 pens. If the price of one pen is $2, the value of marginal product of the eleventh unit of labor is:
A) $1.50. B) $2. C) $4. D) $6.
Which of the following statements about positive economic analysis is false?
A) There is much more disagreement among economists over normative economic analysis than over positive economic analysis. B) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. C) Unlike normative economic analysis, positive economic analysis can be tested. D) There is much more disagreement among economists over positive economic analysis than over normative economic analysis.
During the New Deal, the structure of capitalism in the U.S. changed forever in each of the following areas except for one. Which one?
(a) The relation between government and markets changed in the sense that government interventions of one sort or another occurred. (b) The Federal Reserve System began to control actively the money supply and interest rates to control overall levels of consumer and business spending in the economy. (c) Government spending rose and was intended to serve as an economic stimulus, similar to private investment spending. (d) Individual households began to take greater charge over their own economic welfare with no government assistance.