What is the national security argument for restricting international trade? What is its flaw?
What will be an ideal response?
The national security argument is that the nation must protect and maintain industries that produce defense equipment and armaments as well as those industries upon which the defense industries rely. The problem with this argument is that all industries contribute to national defense, though some do so directly while others do so indirectly. For instance, the sugar industry contributes to national defense because factory workers and armed service men and women drink colas made using sugar, but protecting the sugar industry for reasons of national defense is ludicrous.
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Adam Smith (1776) is primarily associated with the theory that industrialization proceeds at the expense of the working class
Indicate whether the statement is true or false
Ways to ration goods include
A) first-come, first-served. B) political power. C) prices. D) all of the above.
If a decrease in prices increases total revenue for a product in the short run, in the long run, it will: a. Increase total revenue by more
b. Increase total revenue by less. c. Decrease total revenue. d. Either b. or c. could result in the long run.
Which of the following is a true statement?
a. International data leave few doubts that a nation's GDP per person is associated with its citizens' standard of living. b. Rich and poor countries often have vastly different standards of living, but similar levels of real GDP per person. c. The value of leisure time is included in the calculation of GDP per person. d. International data indicate that measures on the distribution of income are closely associated with GDP per person.