The cheap foreign labor argument is a poor reason for restricting international trade because
a. the labor productivity of workers who are paid less is lower than the labor productivity of those who are paid more
b. all firms and workers gain when there are no restrictions on international trade
c. infant industries such as steel and automobiles need to be protected
d. specialization and free trade usually raise the prices of all traded goods, so that the workers are paid more
e. long run labor costs tend to be the same worldwide because of workers' mobility
A
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A) A, B, and C B) B, C, and D C) A, C, and D D) C and D
The smaller the fraction of an investment financed by borrowing,
A) the smaller the potential return and the greater the potential loss on that investment. B) the greater the potential return and potential loss on that investment. C) the greater the potential return and the smaller the potential loss on that investment. D) the smaller the potential return and potential loss on that investment.
As the value of the Gini coefficient approaches zero
A) the percentage of the population under the poverty line decreases. B) the percentage of the population under the poverty line increases. C) income distribution becomes more unequal. D) income distribution becomes less unequal.
The term Production Function refers to the
A) use of machinery and equipment in production. B) relationship between costs and output. C) relationship between inputs and output. D) role of labor unions.