From an economic perspective, the costs of trade barriers
A. are lower than benefits for domestic producers and workers.
B. are outweighed by the reduction in foreign competition provided by the barriers.
C. far exceed their benefits for society.
D. are about equal to the benefits.
Answer: C
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In practice, the hedonic price method
a. is easy to use because attribute data are always readily available b. estimates the prices of the product’s characteristics c. can be implemented with a simple empirical model d. has never been used by empirical economists
Which of the following correctly identifies an argument against free trade?
A) Free trade reduces world production. B) Free trade hampers technology transfers. C) Free trade increases the wages in importing countries. D) Free trade may result in job loss in some specific industries in the domestic economy.
When there is an inflationary gap:
a. Unemployment exceeds the natural rate of unemployment. b. Unemployment equals the natural rate of unemployment c. Unemployment is less than the natural rate of unemployment. d. Any of the above is possible.
If foreign firms send profits back to their industrial countries from the developing countries, developing countries will have a larger deficit on their balance of payments accounts
a. True b. False Indicate whether the statement is true or false