According to empirical observations, the cost of restricting international trade in the U.S. is much greater than the benefits generated from restriction. In the light of the above observation, which of the following statements is true?
a. The benefits of protecting domestic jobs typically outweigh the costs.
b. Consumers end up paying much more for the goods they buy in order to subsidize the relatively inefficient domestic producer.
c. U.S. GDP would be over $14 billion higher with import restrictions than without restrictions.
d. Protection of the U.S. textile and sugar industries means that all consumers pay a lower price for clothing and sugar.
e. Protection of the domestic industries enable the producers to charge lower prices for their products.
b
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Suppose that the value of the long-run absolute elasticity of demand for a good is 1.2. Then, we know the short-run absolute price elasticity of demand will be
A) inelastic. B) greater than 1.2. C) elastic. D) less than 1.2.
If people have a sudden decrease in confidence in the open economy of the U.S. and no longer want to invest there, the NCO:
A. increases, and the demand for loanable funds curve would shift left. B. decreases, and the demand for loanable funds curve would shift right. C. decreases, and the demand for loanable funds curve would shift left. D. increases, and the demand for loanable funds curve would shift right.
When considering the factor distribution of income, which of the following income would go to owners of physical capital?
A. Corporate profits B. Taxes C. Wages D. Proprietor Income
Suppose Andrea is taking just two courses and is at a point inside (or below) her PPF of grades for those two courses. If Andrea becomes more efficient in her study habits then it is impossible for ____________________, ceteris paribus.
Fill in the blank(s) with the appropriate word(s).