"Trade restrictions such as tariffs and quotas are like a blockade that a nation imposes on its own people." Is this statement true?
A) Yes, both the trade restrictions and a blockade will reduce the gains from specialization and trade.
B) No, a blockade will help the residents of a nation achieve a higher income level; trade restrictions will not.
C) No, trade restrictions will help the residents of a nation achieve a higher income level; a blockade will not.
D) Uncertain, the statement is true if the gains of the residents exceed those of foreigners; otherwise it is false.
A) Yes, both the trade restrictions and a blockade will reduce the gains from specialization and trade.
You might also like to view...
The demand curve and marginal revenue curve for red rubber balls are given as follows:
Q = 16 - P MR = 16 - 2Q What level of output maximizes profit? A) 0 B) 4 C) 5.5 D) 6 E) B, C and D all maximize profit.
It is often argued that if foreign goods are kept out of the domestic economy:
a. jobs will be lost at home. b. jobs will be created abroad. c. domestic consumers will enjoy product surpluses. d. jobs will be created at home. e. foreign consumers will suffer product shortages.
If the marginal propensity to consume is 0.8, what is the value of the expenditure multiplier?
a. 0.2 b. 0.8 c. 1.25 d. 5.0 e. 8.0
Answer the following statements true (T) or false (F)
1. One basic argument for redistributing income to achieve more equality rests on the idea of maximizing the society's total utility when there is diminishing marginal utility from income. 2. The basic reason why the debate between income equality versus inequality is on-going is because there is a trade off between income equality and economic efficiency. 3. U.S. income statistics indicate that more than one-eighth of the nation lived in poverty in 2011. 4. The poverty rate in the U.S. increased significantly in the period 2007-2010. 5. The incidence of poverty is very high among the elderly (65 years or older).