Firms in a high-wage nation such as the U.S. can compete effectively with imports from low-wage nations if
a. skill levels are identical in the nations
b. the U.S. reduces tariffs on imports
c. low-wage nations impose tariffs on U.S. made goods
d. labor productivity is higher in the low-wage nation
e. labor productivity is higher in the U.S.
E
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Two arguments used to promote trade barriers are the infant-industry argument, and the dumping argument. Explain each of these arguments and evaluate whether each one has any flaws
What will be an ideal response?
Each point on the production possibilities frontier achieves allocative efficiency
Indicate whether the statement is true or false
An upward-sloping supply curve shows that
a. buyers are willing to pay more for a scarce product. b. suppliers are willing to increase production of their goods if they can receive higher prices for them. c. buyers are unaffected by sellers' costs of production. d. the price of a product is not influenced by the price buyers are willing to pay. e. at higher prices, an envy effect begins to affect the demand curve.
Why did the Bretton Woods system ultimately break down?
A. The refusal of OPEC countries to accept payment for oil in gold. B. The refusal of surplus countries to devalue as required by law. C. An inability to devalue the U.S. dollar despite chronic payments deficits. D. An inability to adequately measure balance of payments surpluses and deficits.