As trade restrictions are eliminated, increased imports
A. Shift the allocation of resources away from import-competing industries.
B. Leave the composition of the GDP unchanged.
C. Redistribute income out of import-using industries.
D. Lower competition in product markets.
Answer: A
You might also like to view...
The 45-degree reference line indicates all points at which
A) planned real saving and planned real investment are equal. B) planned real saving and planned real saving are equal. C) planned real consumption expenditures and real GDP are equal. D) planned real consumption expenditures and planned real saving are equal.
Compared to the no-trade situation, if the United States imports video games,
a. the price of video games will decline in the domestic market. b. domestic video game producers will be able to charge higher prices. c. domestic video game producers will expand both output and employment. d. U.S. consumers will be harmed.
Cash payments that companies make to shareholders are called
a. annuities. b. dividends. c. premiums. d. favorables.
Today the federal government collects nearly
A. $4 trillion a year in tax revenues. B. $500 billion a year in tax revenues. C. $1 billion a year in tax revenues. D. $1 trillion a year in tax revenues.