For infant industry tariff protection to be valid requires that
A) the tariff must be allowed to last forever.
B) only industries that currently are producing efficiently should be protected.
C) government officials must predict which industries will eventually be able to compete with more established foreign producers.
D) the industries protected must have substantial monopoly power in the absence of foreign competition.
C
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Dutch Disease is associated with a dramatic decline in the demand for a primary commodity produced by a country
a. True b. False Indicate whether the statement is true or false
Which of the following statements about the GDP gap is not true?
a. It widens during recessions and narrows down during expansions. b. When an economy's GDP gap equals zero, it operates on its production possibilities curve. c. It is a measure of output lost as a result of unemployment. d. There are more goods and services available in an economy as its GDP gap widens. e. It is equal to potential real GDP minus actual real GDP.