The infant-industry argument about tariffs argues that:
A. it is unfair to levy tariffs on items intended for use by infants.
B. tariffs should be levied on foreign products that compete with new domestic industries only in the short run.
C. if a newly established domestic industry can survive in the short run, a tariff should be levied to protect it from foreign competition in the long run.
D. permanent tariffs should be levied on foreign products that compete with those produced by newly established domestic industries.
Answer: B
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The above table has data on the consumption function in the nation of Mojo
a. What is the amount of autonomous consumption expenditure? b. What is the marginal propensity to consume?
Refer to the supply and demand graph below for a public good. Point c on the graph shows where the:
A. Total benefit equals the total cost of the public good
B. Marginal benefit equals the marginal cost of the public good
C. Average benefit equals the average cost of the public good
D. Total benefit of the public good is at the maximum