The infant-industry argument is often criticized because
A. it reduces labor productivity in the short term.
B. it reduces government revenues in the short term.
C. it is difficult to determine which industry merits protection.
D. it reduces the employment rate.
Answer: C
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Suppose a country, whose production and consumption of coffee is large relative to the world market, has just entered the global market. If the country is a net exporter of coffee, we would expect the world:
A. supply curve to shift more to the right than the world demand curve as a result. B. supply curve to shift more to the left than the world demand curve as a result. C. demand curve to shift more to the right than the world supply curve as a result. D. demand curve to shift more to the left than the world supply curve as a result.
Which statement is false?
A. The poverty rate was lower in 2009 than it was in 2000. B. The poverty rate for children under 18 is higher than the poverty rate for people over 65. C. The poverty rate today is higher than it was in 2006. D. The poverty rate for Hispanics is three times that of whites.
Suppose Chelsea reads two news articles about future house prices. The first article predicts that house prices will fall next month, and the second predicts that house prices will rise next month. Valerie reads the same two articles, but she first reads the one that predicts that house prices will rise, and then reads the one that predicts that house prices will fall. If Chelsea and Valerie know very little about future house prices, and each uses anchoring and adjustment to form her assessment, then, all else equal, which of them is more likely to think that house prices will rise next month?
A. They will both think that house prices will stay the same B. They are both equally likely to think that house prices will rise C. Valerie D. Chelsea
Which of the following sets of terms describes the problem of scarcity in economics?
A) goods, land, and needs B) labor, needs, and opportunity costs C) choices, opportunity costs, and trade-offs D) production, consumption, and wants