A common argument in favor of restricting international trade in good x is based on the premise that
a. international trade reduces total surplus in countries that export good x.
b. international trade reduces total surplus in countries that import good x.
c. international trade is desirable only when countries with different domestic supplies of natural resources play by different rules when trading with one another.
d. trade restrictions can be useful when one country bargains with its trading partners.
d
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Tijuana, Mexico is across the border from San Diego, California
It has become a world-leading producer and exporter of television sets and computer monitors, which it assembles in modern factories owned by multinational consumer electronics firms such as Sony. Initially, these electronics were produced in the industrialized countries of their parent companies, and after several years, the production moved to Tiajuana. This is an example of A) the product cycle. B) intraindustry trade. C) the specific factors model. D) the magnification effect. E) None of the above.
A beneficial oil-price shock increases labor demand. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase. B) Both employment and the real wage rate would decrease. C) Employment would increase and the real wage would decrease. D) Employment would decrease and the real wage would increase.
Differentiate between an induced increase in consumption and an autonomous increase in consumption. How are they represented on a graph?
What will be an ideal response?
Which is a function of modern central banks?
A. To control securities markets B. To control the government's budget C. To manage fiscal policy D. To control the availability of money and credit