”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.
What will be an ideal response?
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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Mr. Clooney inherited a sum of $30,000 in 1990. If the price index for 1990 was 100 and the price index for 2014 is 188, the value of the money he inherited in 2014 dollars is ________
A) $45,200 B) $56,400 C) $38,800 D) $48,000
Answer the following statement true (T) or false (F)
1) Weak property rights encourage faster extraction than would otherwise maximize the long- term stream of profits. 2) Elephants are moving closer to extinction in places where they are treated as private property. 3) The economic benefits of forests include provision of wildlife habitats, erosion prevention, and oxygen production. 4) In the United States and parts of Western Europe, the amount of land covered by forests is increasing.
Which of the following statements is FALSE regarding the definition of poverty?
A. Real incomes in the United States have been growing at a compounded annual rate of almost 2 percent per capita. B. A threshold income level is used to define poverty. C. Poverty cannot be defined in relative terms. D. Adjustments to the poverty level are made on the basis of changes in the Consumer Price Index.
A country's newest ruler has decided the country will become self-sufficient and ceases trade with the rest of the world. The likely outcome of this action will be that the country's citizens will be:
A. better off than before only if they have the absolute advantage in the production of most goods they consume. B. better off than before only if they have the comparative advantage in all goods C. forced to consume less than before if they possessed a comparative advantage in the production of a good. D. better off than before if they possess an absolute advantage in the production of a good.