The main explanation for why the cheap foreign labor argument is a poor reason for restricting international trade is that:
A. workers who get paid less tend to have lower productivity than those who get paid more.
B. all firms and workers gain when there are no restrictions on international trade.
C. infant industries such as steel and automobiles need to be protected.
D. specialization and free trade usually raise the prices of all the traded goods, so that the workers can get paid more.
Answer: A
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Use the following information to answer the next question.SecurityAmount (in billions)Treasury bills$220Corporate bonds140Treasury notes80Corporate stock200U.S. savings bonds60Treasury bonds100The public debt for the economy is
A. $540 billion. B. $460 billion. C. $580 billion. D. $400 billion.
Beth can earn $7,500 by renting out her house. However, her neighbor keeps a pet dog that chases away whoever comes looking for the house. Because her neighbor has a right to keep his pet untied, Beth is unable to find a tenant
What is the efficient outcome in this case if her neighbor values keeping his pet free for $1,500?
Certain vendors that market their goods via mail order have been known to send out catalogues to different regions of the country with items priced differently across regions
Assuming prices are matched to regions on a random basis, this practice would be considered an example of group pricing, or third-degree price discrimination. Indicate whether the statement is true or false
Which country had the highest per capita expenditures on health care in 2009?
A. Australia B. Japan C. Norway D. United States