Protectionism is usually justified on the basis of one of four arguments. What are those four arguments?
What will be an ideal response?
1. saving jobs
2. protecting higher wages
3. protecting infant industries
4. protecting national security
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When aggregate planned expenditure exceeds real GDP,
A) an unplanned increase in inventories occurs. B) real GDP remains at its equilibrium level. C) firms decrease production. D) an unplanned decrease in inventories occurs. E) real GDP decreases.
If the Fed raises the federal funds rate, which of the following occurs?
A) Consumption expenditure decreases. B) Investment increases. C) The price of the dollar on the foreign exchange market increases. D) Net exports increase. E) Aggregate demand increases.
"If a union is only able to organize a few of the firms in an industry, it is unlikely that the union can substantially increase the wages of its members." This statement is
a. false; unions tend to be stronger when they concentrate on only a few producers in an industry. b. false; the demand for unionized workers will be more inelastic if only a few firms in the industry are unionized. c. false; all unions can increase the wages of their members. d. essentially correct.
In order to analyze migration in the long run, it is appropriate to use:
a. the specificfactors model with free movement of labor across borders. b. the HeckscherOhlin model with free movement of labor across borders. c. the Ricardian model with no movement of labor across borders. d. the PPF modified for three goods, three factors of production (all fixed), and three nations.