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.
a
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The ability to produce a good using fewer resources than someone else is called
A) absolute advantage. B) comparative advantage. C) specialization. D) protectionism.
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If you do not use the frequent-flyer coupon to fly to Miami, should you go to Miami?
A. No, your benefit is less than your cost. B. Yes, your benefit is more than your cost. C. Yes, your benefit is equal to your cost. D. No, because there are no benefits in the trip.
What is public choice?
What will be an ideal response?
According to the text, which of the following is true?
A. The United States imports baseballs and exports corn. B. The United States imports wheat, but not auto parts since it exports auto parts. C. The United States imports paper, but not computers since it exports computers. D. The United States imports auto parts and cars, but it doesn't export cars.