Suppose that the United States decided to subsidize a major competitive effort by the semiconductor industry to bring to market the next generation computer chip. Under the current rules of the WTO and GATT, the U.S. effort is
A) allowed as long as the subsidies are a small percent of the total cost.
B) allowed as long as the subsidies do not involve a direct payment to the industry.
C) not allowed.
D) neither allowed nor disallowed.
E) allowed as long as the subsidies do not succeed in creating a new product.
C
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The population of Omega totals one million people, 30 percent of whom are employed. Average output per worker in Alpha is $30,000. Real GDP per person in Alpha totals:
A. $9,000. B. $100,000. C. $21,000. D. $30,000.
Microeconomics can be used by governments to predict the impacts of a policy and suggest solutions to problems
What will be an ideal response?
If output is increased beyond the point where total profit is maximized,
A. marginal profit will be zero. B. marginal profit will be negative. C. marginal profit will be positive. D. MR > MC.
Which of the following federal agencies is engaged in social regulation?
A) Equal Employment Opportunity Commission B) Office of the Comptroller of the Currency C) the Securities and Exchange Commission D) Federal Deposit Insurance Corporation