To follow an outward-oriented strategy, a country that has scarce natural resources and abundant labor supplies should _____
a. export primary goods and import manufactured products
b. export manufactured goods and impose import restrictions on primary goods
c. export both primary and manufactured products
d. export primary goods and impose trade restrictions on manufactured goods
e. export manufactured products and import primary goods
e
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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. e. labor costs tend to be the same worldwide in the long run because of worker mobility.
In 1960, spending on income transfers and health care accounted for 21.5 percent of the federal budget. In 2012, these two items accounted for
a. less than 15 percent of the federal budget. b. approximately 25 percent of the federal budget. c. approximately 37 percent of the federal budget. d. approximately 57 percent of the federal budget.
Refer to Table 4.3. A change in the price of computers caused the change in quantity demanded shown in the table. The price elasticity of demand (calculated using the initial value formula) is:
A. 4. B. 1. C. 0.25. D. 0.125.
Mark's Baseballs produces baseballs. Mark's Baseballs has total fixed costs of $500. Mark's average variable cost is $20, and his average total cost is $25. Mark is currently producing:
A. 5 baseballs. B. 25 baseballs. C. 100 baseballs. D. a number of baseballs that cannot be determined from the information provided.