The infant-industry argument is often criticized because
A) it is difficult to determine which industry merits protection.
B) it reduces government revenues in the short term.
C) it reduces the employment rate.
D) it reduces labor productivity in the short term.
Answer: A
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The most immediate and direct effect of minimum price laws designed to prevent predatory pricing is to
A) guarantee profits to all sellers, large or small. B) guarantee profits to large sellers exclusively. C) guarantee profits to small sellers exclusively. D) preserve competition without guaranteeing profits. E) prevent competition without guaranteeing profits.
A duopoly is:
A. a strategy that benefits both firms. B. an agreement, explicit or implied, between two firms. C. an oligopoly with two firms. D. two firms agreeing to act like a joint monopolist.
If a nation moves upward along its per-worker production function relating output per worker to capital per worker, then: a. labor productivity rises
b. labor productivity falls. c. the amount of capital decreases, other things constant. d. labor input decreases. e. the productivity of capital rises.
The law of marginal diminishing returns
A) is found everywhere. B) is found only in manufacturing. C) is found only in developed economies. D) is the same as the law of diminishing marginal utility.