"I oppose a free trade agreement with Mexico because American workers will lose jobs to low-paid Mexican workers." Explain whether you agree or disagree with this statement
Low-paid workers may also be low-productivity workers. U.S. workers will continue to find employment if their high wages reflect high productivity. In fact, their wages may rise if productivity is high and growing trade with Mexico boosts exports.
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What has happened to the free trade agenda in the last few years, and in particular to the fate of the Doha Round of trade negotiations?
What will be an ideal response?
Remittances refers to:
A. money paid to immigrants from hosting countries. B. money sent home from immigrants working abroad. C. the portion of money paid to immigrants that is not domestically taxed. D. the money immigrants get from the government once they immigrate to a nation.
Suppose the income elasticity of demand is -0.5 for good X. This implies that a 5% decrease in income will cause the quantity demanded of good X to
a. increase by 2.5%, and X is an inferior good. b. decrease by 2.5% and X is a normal good. c. increase by 10% and X is an inferior good. d. decrease by 10% and X is a normal good.
If the firm is producing in the long run, then the firm's average total cost curve:
A. equals the average variable cost curve. B. is less than the average variable cost curve. C. exceeds the average variable cost curve. D. equals zero.