A possible reason a nation might impose a protectionist policy such as a tariff is to
A) encourage specialization in the good in which the nation has a comparative advantage.
B) protect an infant industry from foreign competitors.
C) increase the level of imports.
D) slow domestic production.
B
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A key reason why some nations show little or no growth is
A) overpopulation that overuses limited resources. B) too much private property not directed by the government. C) too much international trade so that all economic growth spills over to foreigners. D) patents in rich nations that keep technology only for the rich. E) lack of incentives to undertake actions toward growth.
Labor unions cause unemployment because the union contract wage is set
A) below the market wage, causing a shortage of labor. B) above the market wage, causing a surplus of labor. C) above the market wage, causing a shortage of labor. D) below the market wage, causing a surplus of labor.