Which of the following is a partially valid economic argument for restricting free trade?
a. Restrictions on foreign trade will increase employment and permanently reduce unemployment.
b. Infant industries may need temporary protection to develop and gain productive efficiency.
c. A nation needs to protect its national defense; hence, it should restrict some products that threaten an industry considered vital to its defense.
d. Both b and c are correct.
D
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The benefits-received principle is based on the idea that higher taxes on the rich are justified because the rich can afford to pay higher taxes
Indicate whether the statement is true or false
If the U.S. demand for British pounds increases,
a. the dollar price of a British pound will increase b. the dollar price of a British pound will decrease c. the exchange rate between dollars and pounds will be out of equilibrium d. the pound will fall in value against the dollar e. there will be no change in either the value of the dollar or the pound
Answer the following statement(s) true (T) or false (F)
1. There are many events that will have an effect on the supply curve but not much of an impact on the demand curve. 2. An increase in demand for a product will eventually cause a lower equilibrium price. 3. Sellers compete to sell a surplus by reducing the price. 4. Supply and demand rarely shift in the same period of time.
If the price of a product is above equilibrium, what forces it down?
What will be an ideal response?