Most economists support free trade in part because trade restrictions:
A. increase international competition.
B. result in larger trade deficits for the nations imposing them.
C. reduce international competition.
D. provide no revenue for the government.
Answer: C
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The rate of return of a stock held for one year equals
A) the change in the price of the stock. B) the dividend yield plus the rate of capital gain. C) the rate of capital gain minus the dividend yield. D) the dividend yield minus the rate of capital gain.
Which of the following is an example of industrial policy?
a. Government imposing a high rate of taxes on the profits of large corporate houses b. Government spending more on the construction of roads and bridges than on education c. Government imposing a high rate of taxes on the import of goods and services d. Government charging lower rate of taxes on the import of goods and services e. Government selling imported cash crops at a subsidized rate
The quantity demanded of a product increases as its price declines because the:
A. lower price results in an increase in supply. B. demand curve is downsloping. C. lower price shifts the demand curve rightward. D. lower price shifts the demand curve leftward.
Explain what effect an increase in the unemployment rate will have on the real wage based on: (1 ) the WS relation; and (2 ) the PS relation
What will be an ideal response?