Answer the following statements true (T) or false (F)
1. The economic gains from expanding international trade are measured in hundreds of billions of dollars.
2. Some environmentalists worry that large firms may evade environmental protection laws by moving their production to countries with loose or nonexistent pollution standards, trading a clean environment for jobs.
3. Protectionism in international trade saves jobs in the specific industry being protected, but costs jobs in other unprotected industries.
4. A number of different studies have attempted to estimate the cost to consumers in higher prices per job saved through protectionism. The costs of saving jobs through protectionism can be high.
1. True
This statement is true. The economic gains from expanding international trade are measured in hundreds of billions of dollars.
2. True
This statement is true. Some environmentalists worry that large firms may evade environmental protection laws by moving their production to countries with loose or nonexistent pollution standards, trading a clean environment for jobs.
3. True
This statement is true. Protectionism in international trade saves jobs in the specific industry being protected, but costs jobs in other unprotected industries.
4. True
This statement is true. A number of different studies have attempted to estimate the cost to consumers in higher prices per job saved through protectionism. The costs of saving jobs through protectionism can be high.
You might also like to view...
Assume that the market for consumer gasoline is perfectly competitive. When one additional seller (gas station) enters the market,
A) then at least one other seller must exit the market. B) the price of gasoline increases. C) the price of gasoline is left unaffected. D) the price of gasoline decreases. E) None of the above is correct.
Which of the following cannot be an effective entry barrier?
A) a firm making very high economic profits B) a firm being granted a patent for its product C) a firm owning all of a vital resource needed to produce a good D) when huge economies of scale exist
________ advocated laissez-faire, the belief that natural market forces, such as changes in prices, wages, and interest rates, would resolve expansionary or contractionary gaps. In contrast, ________ argued that prices and wages were not flexible enough for markets to self-adjust, and advocated discretionary fiscal policy
a. Keynes; classical economists b. Chairman Mao; Herbert Hoover c. Keynes; Ronald Reagan d. Classical economists; Keynes
Which of the following is the best example of a quota?
A. a tax placed on all small cars sold in the domestic market B. a limit imposed on the number of men's suits that can be imported from a foreign country C. a subsidy from the U.S. government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits D. a $100-per-car fee imposed on all small imported cars