Explain the "Unfair Trade Practices" argument as a case against free trade
What will be an ideal response?
The argument is that foreign firms may sometimes behave strategically against a domestic firm or industry by setting prices below cost in an effort to monopolize the domestic industry. Since this type of behavior would generally be considered a violation of the Sherman and Clayton acts we should give the government power to fight back when it comes to foreign firms whom are not playing by the rules.
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The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that
a. all industries will claim that they are infant industries in order to gain protection b. the protected industry will become too efficient and drive out foreign competition c. once in place, it is difficult to remove protection even as the industry matures d. it causes the goods that are produced in the protected industry to have lower prices e. this policy compromises national security if the infant industry produces military goods
There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015
If the Packers raised ticket prices, the A) demand for Packers tickets decreases. B) demand curve for Packers tickets shifts leftward. C) demand curve for Packers tickets shifts rightward. D) the quantity demanded of Packers tickets decreases.
The economist that devised a method for setting the level of a public good efficiently is:
A. John Nash. B. Arthur Cecil Pigou. C. Ronald Coase. D. Theodore Groves.
Which of the following mathematical statements is correct
a. Total Output=Productivity x Average Hours x the employment-population ratio x Population b. Total Output=Productivity / Average Hours x the employment-population ratio / Population c. Total Output=Productivity + Average Hours + the employment-population ratio + Population d. Total Output=(Productivity x Average Hours) / (the employment-population ratio x Population) e. Total Output=Productivity x Average Hours x the employment-population ratio