Suppose the Swiss Government Subsidized Its Watch-Making Industry,enabling Swiss Producers

question 60

Multiple Choice

Suppose the Swiss government subsidized its watch-making industry,enabling Swiss producers to undersell foreign watch producers.The law of comparative advantage indicates that watch-importing nations would best take advantage of the Swiss subsidization policy by

• A)setting a tariff high enough to just offset the subsidy granted to the Swiss watch-making industry.
• B)setting a declining quota on the import of Swiss watches such that the nation's domestic watch-making industry would continue to grow at the same rate as the rest of the economy.
• C)setting a tariff such that the prices of Swiss and domestic watches to the consumer are equal.
• D)gladly accepting the subsidy of the Swiss government,making the appropriate adjustment for the resources temporarily displaced from the domestic watch-making industry.

Recognize the characteristics shared among all living organisms, indicating common origins.

Comprehend the principles of cellular structure and function as the basis of life.

Appreciate the role of genetic information in evolution and inheritance.

Understand evolutionary mechanisms, including natural selection and genetic drift.

---

Definitions:

Tradable Pollution Permits

Government-issued allowances that give the holder the right to emit a specific amount of pollutants; these permits can be bought and sold, creating a market for pollution control.

Emitted Emissions

The pollutants released into the environment as a byproduct of economic activity, such as manufacturing or transportation.

Mercury

A heavy, silvery d-block element that is the only metallic element that is liquid at standard conditions for temperature and pressure.

Tradable Pollution Permits

A market-based approach to controlling pollution by offering a limited number of permits that allow the holder to emit a certain amount of pollutants, which can be bought and sold.