Which of the following is a possible justification for restricting trade?
a. Restricting trade decreases domestic production
b. Restricting trade increases domestic unemployment.
c. Restricting trade ensures lower domestic wages.
d. Restricting trade protects domestic production.
d
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Which of the following is most likely to lead to an inward shift of the aggregate demand curve?
a. A decrease in the prices of raw materials b. A decline in foreign price levels c. A decline in the domestic price level d. An optimistic expectation about the economy's performance in the near future e. A decrease in foreign income
Suppose quantity demanded is given by Qd = 100 - P, and quantity supplied is given by Qs = 20 + 3P. In this case, equilibrium price, P*, and equilibrium quantity, Q*, are as follows:
A. P*= 80, Q*= 20 B. P*= 20, Q*= 80 C. P*= 10, Q*= 90 D. P*= 40, Q*= 140
Most MNEs generate a large portion of their revenues in their home regions.
a. true b. false
In the 1980s, Japan had a significant trade surplus. The G-7 nations wanted Japan to reduce its trade surplus, and therefore they pressured the Japanese government to:
A. devalue the yen. B. keep the yen fixed. C. control inflation. D. strengthen the yen.