Why don't the winners from free trade win the political argument?
What will be an ideal response?
Trade restrictions are enacted despite the inherent inefficiency because of the political actions of rent seeking groups, which fear that foreign competition might have a negative impact on their industry, firm, or jobs. The anti-trade groups are easily organized and have much to gain from trade restrictions, whereas the vast millions of consumers, who would win from free trade, are difficult to organize because each individual has only a small amount of loss when trade restrictions are imposed. Hence the winners from trade restrictions frequently out-lobby the winners from free trade.
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All of the following are barriers to international investment EXCEPT
A) adverse selection. B) incomplete information. C) moral hazard. D) symmetric information.
The most prevalent type of damage associated with hazardous waste sites is
a. water and soil contamination b. loss of livestock c. fish kills d. air pollution
Some economists have proposed a new definition of money that would better track money demand. One such measure is the MZM or "money zero maturity." What kind of items will be included in this measure?
A) Assets that have no maturity such as cash, checking accounts, and shares of stocks. B) Assets that can be converted to cash with zero penalty and securities that are issued by the U.S. government since these are virtually risk free. C) Any deposits that do not have specified maturity terms, just as long as these deposits are fairly liquid and are used by consumers to pay for transactions. D) Liquid accounts held by the public, regardless of whether they are classified as M1 or M2 and the reserves of banks that earn no interest since these could be used to create money.
Which of the following about capital income is not correct?
A) It refers to a firm's revenue. B) It is also called profit income. C) It goes to the firms. D) It accounts for less than 35% of income in advanced countries.