If a government pursues the industrial policy of import substitution, it is:
A. protecting domestic industries until they are efficient enough to compete in the world market.
B. giving consumers incentive to substitute imported goods for those domestically produced.
C. mandating that imports can only be sold if the domestic economy does not produce that particular good.
D. encouraging domestic industries to ship imports to other countries.
Answer: A
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If a good is imported into (large) country H from country F, then the imposition of a tariff in country H
A) raises the price of the good in both countries (the "Law of One Price"). B) raises the price in country H and cannot affect its price in country F. C) lowers the price of the good in both countries. D) lowers the price of the good in H and could raise it in F. E) raises the price of the good in H and lowers it in F.
In the acronym PYNTE, the letter “Y” stands for changes in ______.
a. income b. number of buyers c. tastes d. expectations
If the deficit is falling, the national debt will be ________.
Fill in the blank(s) with the appropriate word(s).
Which of the following does free trade encourage?
A) higher rates of economic growth B) more rapid spread of technology C) domestic industries' access to larger markets D) all of the above