The long-run social benefits of infant industry protection are more likely to be realized if
(a) investors believe that tariff barriers are permanent.
(b) investors believe that tariff barriers are transitory.
(c) tariff barriers increase over time.
(d) tariff barriers are replaced with quotas over time.
B
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Referring to the previous question, all else constant, a 5 unit increase in the wage index would cause:
A) quantity supplied to increase by 9 units and be shown by a movement up the supply curve. B) quantity supplied to decrease by 9 units and be shown by a movement down the supply curve. C) quantity supplied to increase by 9 units and be shown by a rightward shift of the supply curve. D) quantity supplied to decrease by 9 units and be shown by a leftward shift of the supply curve.
The most common way that the government deals with negative externalities is
a. ignoring them b. taxing the goods that cause the negative externalities c. controlling the quantity produced of the good that causes the negative externalities d. privatizing them e. to make its production illegal