What must a government know for the infant industry argument to be a valid reason for imposing tariffs?
What will be an ideal response?
The government must be able to determine what industries will eventually be able to survive without protection, but cannot survive initially without protection. Hence, they would need to know a great deal about technology in the industry, input prices, world demand for the good, and many other things.
Economics
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An increase in product price implies that
A) the firm's marginal factor cost will increase. B) the wage rate the firm pays will increase. C) the firm's demand for labor increases. D) the firm's demand for labor decreases.
Economics
The largest spending category for state governments is
A) welfare. B) health care. C) education. D) highway construction.
Economics