The infant-industry argument about tariffs argues that:
a. it is unfair to levy tariffs on items intended for use by infants.
b. tariffs should be levied on foreign products that compete with new domestic industries only in the short run.
c. if a newly established domestic industry can survive in the short run, a tariff should be levied to protect it from foreign competition in the long run.
d. permanent tariffs should be levied on foreign products that compete with those produced by newly established domestic industries.
b
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Which of the following statements is correct?
A) assets plus liabilities equal net worth B) assets plus net worth equal liabilities C) assets equal liabilities plus net worth D) liabilities minus net worth equal assets
Which of the following would most likely not cause market demand for a normal good to decline?
a. An increase in the price of a substitute. b. An increase in the price of a complement. c. A decline in consumer income. d. Consumer expectations that the good will go on sale in the near future. e. An announcement by the Surgeon General that the product contributes to premature death.death.
The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers
a. True b. False Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. Productive efficiency does not hold for a profit-maximizing, monopolistically competitive firm in the long-run equilibrium because the firm operates along the diseconomies of scale region of its average total cost curve. 2. Monopolistically competitive firms achieve allocative efficiency but not productive efficiency. 3. A monopolistic competitor does not earn profits in the long run unless it can successfully differentiate its product in the minds of its consumers.