The estimated cost of automobile jobs saved due to limitations on foreign autos is $105,000 per job. Why is there a cost to saving jobs through protectionism?
What will be an ideal response?
When foreign cars are limited, consumers pay more for cars. In addition, the United States devotes too many resources to car production instead of more resources being transferred to where workers would be most productive.
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If a firm buys its labor in a competitive market, then a short-run increase in the price of the firm's output will cause the firm to
A) offer a higher wage. B) hire fewer workers. C) hire more workers. D) offer a lower wage.
The ratio of government debt to GDP since 1940 indicates that the U.S. has mostly been:
a. a net creditor by at least 20% of the value it produces each year. b. a net creditor by at least 10% of the value it produces each year. c. a net borrower by at least 20% of the value it produces each year. d. a net borrower by at least 40% of the value it produces each year.
Which of the following is not a characteristic of a perfectly competitive market?
a. Different sellers sell identical products. b. There are many sellers. c. Sellers must accept the price the market determines. d. All of the above are characteristics of a perfectly competitive market.
Unlike the classical economists, Keynes believed that the economy would automatically adjust to full employment.
Answer the following statement true (T) or false (F)