The United States produces some of the electronic components used as inputs in its fighter planes. But due to the limited number of companies that produce these items, it imports these parts from Japan as well. There is concern that in the case of a prolonged war, these important imports may not be available. Fearing that the Air Force may be unable to fulfill its tasks in the case of a prolonged war, the specificity rule suggests that the United States should
A. ban the importation of these electronics parts to protect jobs in this industry.
B. subsidize the domestic production of these electronics parts.
C. impose tariffs on the imports of these electronic parts.
D. impose high taxes on the production of these electronic parts.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
The Consumer Expenditure Survey measures
A) households' spending patterns. B) the wholesale price on what consumers buy so that a markup percentage can be found. C) the maximum price buyers will pay for a good or service. D) consumers' incomes. E) the jobs at which consumers work.
On the gold standard, a trade deficit in the U.S. impacted the economy by producing
(a) a gain of specie. (b) a tight supply of money. (c) low interest rates. (d) deflation.
In the long run the monopolistic competitor
A. charges the same price but produces a greater output than the perfect competitor. B. charges a higher price but produces a smaller output than the perfect competitor. C. charges a higher price and produces a higher output than the perfect competitor. D. charges a lower price and produces a lower output than the perfect competitor.