Suppose that the United States decided to subsidize a major research and development effort by U.S. firms in the semiconductor industry. Under the current rules of the WTO and GATT, the U.S. effort is
A) allowed as long as the subsidies are a small percent of the total cost.
B) allowed as long as the subsidies do not involve a direct payment to the industry.
C) not allowed.
D) neither allowed nor disallowed.
E) allowed as long as the subsidies are for developing a "precompetitive" technology.
E
Economics
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When someone takes out a loan at a bank, the money supply becomes smaller.
Answer the following statement true (T) or false (F)
Economics
The reason why countries should specialise in producing a certain product for export is explained by:
(a) The Law of Comparative Advantage; (b) The Law of Absolute Advantage; (c) Both (a) and (b) above. (d) None of the above
Economics