Economists are generally opposed to tariffs or other restrictions on imported goods because of the negative secondary effects they create that more than offset the benefits to employment in the domestic industry. Which of the following could be considered a secondary effect of these trade restrictions?
a. The price to consumers of the good in question will be higher as a result of the restriction, meaning consumers will be worse off.
b. As consumers must spend more money to purchase the good, there will be employment losses in other domestic industries as consumers cut back on their spending on other things.
c. Because there is a link between a country's imports and its exports, less imports from other countries will result in lower domestic employment in export industries.
d. All of the above.
D
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If the economy's capital stock increases over time
A) net investment is positive. B) depreciation is less than zero. C) depreciation exceeds gross investment. D) gross investment equals depreciation.
Which is a feature of a purely competitive market?
A. Price differences between firms producing the same product B. Significant barriers to entry into the industry C. The industry's demand curve is perfectly elastic D. Products are standardized or homogeneous