If the Executives of the U

question 90

Multiple Choice

If the executives of the U.S.silicon-chip industry lobby Congress for protection from imports on the grounds that the military should have an unrestricted domestic supply of silicon chips, they are using the:

• A) environmental standards argument.
• B) infant industry argument.
• C) cheap foreign labor argument.
• D) national security argument.

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Definitions:

Industry Price

The average or standard price of goods or services within a specific industry, influenced by factors like demand, supply, and competition.

Returns to Scale

The rate at which output increases as inputs are increased proportionately.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at different prices.