All other things equal, if the price of foreign-made cars rises, then the GDP deflator:
A. and the CPI will rise by equal amounts.
B. will rise and the CPI will remain the same.
C. will remain the same and the CPI will rise.
D. and the CPI will rise by different amounts.
Ans: C. will remain the same and the CPI will rise.
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Which of the following is an infant-industry argument in favor of restrictions on foreign trade?
a. Foreign producers must be stopped from selling their products in this country below cost of production. b. Domestic workers must be protected from the lower wages paid in foreign countries. c. The nation's security demands we ensure an adequate domestic supply capacity of certain products. d. Do unto others as they do unto you. e. Industries in the early stages of development must be protected from more mature producers.
Private property:
A. discourages cooperation because people don't want to part with what they own. B. discourages innovation, as people are often afraid to risk losing their own property. C. encourages owners to maintain or improve their property so as to preserve or enhance value. D. does everything indicated by the other answers.