The main problem with accepting the national security argument as a valid reason to restrict international trade is that
a. other countries could have produced the goods more efficiently
b. almost all industries could be described as being vital to national security
c. technology secrets are difficult to keep from other countries in this age of computer information
d. it will become too expensive to produce national security goods within the country
e. in reality, tariffs are impossible to enforce effectively because of the black market
B
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The current income you would sacrifice to start your own lawn-cutting business is part of the
A) cost of doing business. B) present value of your initial investment. C) opportunity cost of invested funds. D) opportunity cost of starting a business.
In perfect competition, the
A) market demand for the good or service is large relative to the minimum efficient scale of a single producer. B) market demand for the good or service is small relative to the minimum efficient scale of a single producer. C) market demand for the good or service can be small relative to the minimum efficient scale of a single producer as long as the goods or services are not identical. D) size of the market demand for the good or service relative to the minimum efficient scale of a single producer does not affect competition.