Why is it impossible to make everyone better off in the long run by imposing import restrictions?
What will be an ideal response?
In the long run, any import restriction in one nation ultimately reduces its exports because foreign residents will be less able to purchase goods shipped from that nation. Fewer exports from that nation lead to a decline in employment in its export industry.
You might also like to view...
Which of the following statements regarding the Federal Open Market Committee is correct?
a. Only the five voting regional Fed presidents attend the meetings. b. All regional Fed presidents attend and vote at the meetings. c. All regional Fed presidents attend the meetings, but only five get to vote. d. Regional Fed presidents may neither attend nor vote the meetings.
Larger increases in the demand for labor than in the supply of labor explain:
A. the substantial increase in real wages. B. skill-biased technological change. C. the slowdown in real wage growth. D. increasing wage inequality.
If butter and margarine are substitutes, then an increase in the price of butter will reduce the demand for margarine.
Answer the following statement true (T) or false (F)
Demand factor:
What will be an ideal response?