Which of the following is the rationale behind the infant industry argument for import restrictions?
a. Import restrictions allow new industries, which have cost disadvantages, to compete with bigger firms from abroad.
b. Import restrictions prevent foreign firms from selling low-quality raw materials to new domestic industries.
c. Import restrictions help protect industries whose existence, owners claim, is vital to the security of the nation.
d. Import restrictions prevent foreign firms to engage in unfair practices such as dumping, or selling their products below the cost of production.
a
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Suppose the market-clearing price of guitars is $500, but the prevailing price is currently $700. Pick the correct statement
A) There is a shortage of guitars. B) Guitar sellers would not be able to successfully sell all they planned to sell. C) Guitar buyers would not be able to successfully buy all they planned to buy. D) All of the above are true. E) None of the above is true.
A good that is both excludable and rivalrous is a(n):
a. public good. b. club good. c. private good. d. inferior good. e. necessary good.