Question

25. Because a country does not want to risk being vulnerable to being dependent on imports for something as important as energy, it bans the importation of oil and coal. As a result, energy is so expensive that homes are cold during the winter and hot during the summer. The rationale for this policy would be most closely related to what argument for trade restriction? O the need to protect domestic jobs O protection against dumping O need for national defense O protecting infant industries 26. When a consumer joins a network, he generates a(n): O private benefit and an external benefit equal to the vertical distance between the private demand curve and the social demand curve. O external benefit, only. O private benefit and an external benefit equal to the horizontal distance between the private demand curve and the social demand curve. O private benefit, only 27. When there is a positive network externality to a network good, a larger network is associated with: O an increase in demand O an increase in supply. O a decrease in supply. O a decrease in demand. 28. If public policies are effective in reducing the depth of poverty then the income defict should beand the ratio of income to poverty should be O falling: falling O rising; rising O rising; falling O falling; rising