Currently Belize, a country in Central America, has a small coffee industry but does not export any coffee.
Suppose the government of Belize, in order to protect the new coffee industry to enable it to grow into a mature industry that can compete in world markets, places a tariff on the importation of coffee. What is the argument that has been used to support the tariff on coffee? A) the infant-industry argument
B) the dumping argument
C) protection of Belize coffee workers
D) to prevent rich countries from exploiting developing countries
Question 2
The table above represents the marginal cost and marginal benefit associated with pizza (in terms of movies). What quantity of pizza should be produced if resources are to be used efficiently?
A) 5 pizzas
B) 6 pizzas
C) 7 pizzas
D) 8 pizzas
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