Which of the following is the most accurate statement?
a. The one argument for restricting trade that almost all economists accept as valid is the infant-industry argument.
b. Almost all economists insist that it is never appropriate to protect "key" industries, even when there are legitimate concerns about national security.
c. The idea that one nation might want to threaten another nation with a trade restriction is associated with the protection-as-a-bargaining-chip argument for restricting trade.
d. The protection-as-a-bargaining-chip argument for restricting trade is also known as the infant-industry argument.
c
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New Keynesian economics differs from real business cycle economics in that
a. markets are perfectly competitive in new Keynesian models. b. business cycles are fluctuations in the natural rate of unemployment in new Keynesian models. c. wages and prices are perfectly flexible. d. agents maximize utility in the new Keynesian model. e. none of the above.
According to the above figure, if steel mills are charged an effluent fee in order to bear the cost of pollution, what happens to the equilibrium price and equilibrium quantity?
A) They are unchanged. B) They change from P1 and Q1 to P2 and Q2. C) They change from P2 and Q2 to P1 and Q1. D) The equilibrium price increases from P1 and P2, but the equilibrium quantity is unchanged.
We call an economy that is self-contained and does not engage in any trade with outsiders a(n):
A. autarky. B. oligopoly. C. oligarchy. D. monarchy.
Interest is the payment for the use of: a. borrowed funds
b. natural resources. c. labor. d. any factor of production.