Describe the pressures that discourage trade.
What will be an ideal response?
One pressure occurs because trade hurts workers and producers who compete with imported products and provides them with an economic interest in restricting trade. The national security argument against trade is that we can't depend on foreign suppliers to provide us with defense-related goods or food in time of war, so we should protect these industries by discouraging trade. The dumping argument against free trade is that domestic production may be undercut when foreign producers sell their products at prices lower than domestic prices, in order to drive the domestic producers out of business (consolidating monopoly power that may eventually harm buyers). The infant industries argument against free trade is that imports may make it difficult or impossible for a new domestic industry to develop.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
A rational decision is one that
A. satisfies all desires. B. avoids the intentional allocation of resources. C. assigns available resources in the manner most preferred by decision makers. D. assigns available resources to the uses with the lowest opportunity costs.
When one more car enters a crowded highway it increases the travel times of all other drivers on the highway creating a negative externality
a. True b. False Indicate whether the statement is true or false
Many of the new pollutants to which the world has been subjected are
a. less visible. b. less malodorous. c. far more dangerous. d. All of the above are correct.