All but one of the following statements is used to justify protectionism. Which statement is not used to justify protectionism?
A) Free trade leads to higher prices for imported goods.
B) Free trade reduces employment by driving domestic firms out of business.
C) A country should not rely on other countries for goods that are critical to its national defense.
D) Trade restrictions are necessary to protect new firms until they can gain experience and become more productive.
Answer: A
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________ of people work at firms that have 50 or more employees
A) Less than 25 percent B) About 50 percent C) More than 75 percent D) Close to 97 percent
An increase in the demand for a good means that:
a. the demand curve has shifted to the left. b. the good's price has fallen and, as a result, consumers are buying more of the good. c. the good has become scarce. d. consumers are willing to purchase more of the good at each possible price.
According to the life-cycle hypothesis, if a person received a payment roughly equal to her current annual income, her consumption would:
a. roughly double b. increase but not as much as the increase in income c. increase by more than the increase in income d. would increase at all e. none of the above
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.