The United States appears at times to have a totally schizophrenic attitude toward protectionism
The United States was the country that proposed the establishment of the World Trade Organization as early as the late 1940s, and was also the only industrialized country that refused to ratify this at that time. The United States has consistently argued on the side of multinational free trade in GATT Rounds, and yet maintains many protectionist laws such as those which reserve oil shipments from Alaska to U.S. flag carriers. How can you explain this apparent lack of national consistency on this issue?
This reflects the fact that international trade typically has many winners and relatively fewer, but politically powerful losers. Short of guaranteed (constitutional?) non-conditional compensatory mechanisms, the basic conflict between these two groups will always be there.
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Economic analysis requires both mathematical reasoning and historical study
a. True b. False Indicate whether the statement is true or false
At a price below the equilibrium price, there is
A) a surplus. B) a shortage. C) excess supply. D) sub-equilibrium. E) none of the above
Suppose there are two countries (country A and country B) each with its own currency (Currency A and Currency B). Suppose the exchange rate is expressed in terms of amount of Currency A needed to get Currency B. A strengthening of Currency A would show up as
A. an increase in the interest rate. B. an increase in the exchange rate. C. a decrease in the exchange rate. D. a decrease in the interest rate.
Money solves the dilemma of a double coincidence of wants by serving as a
A) unit of account. B) medium of exchange. C) symbol of value. D) store of value.