Anti-globalization and protectionism are both arguments against free trade. How do these two arguments differ?
What will be an ideal response?
The anti-globalization argument against trade is relatively new. This argument includes the notion that free trade destroys the culture of many countries and that factories locating to low-income countries do not meet environmental or safety regulations that are imposed in high-income countries. The protectionism argument has been around for centuries. Protectionism is usually justified on the basis of one of the following four arguments: saving jobs, protecting high wages, protecting infant industries, and protecting national security.
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All else held constant, which of the following is a necessary consequence of a depreciation of the U.S. dollar against other currencies?
A. U.S. exports will become cheaper relative to other nations' products. B. The terms of trade will move in favor of the United States. C. The United States will experience an increase in the volume of imports. D. International speculators will buy U.S. dollars and sell other currencies.
Marginal productivity theory would suggest that
A) all workers should be paid the same wage. B) higher productivity will increase the market wage of an individual. C) labor demand will have no impact on the wage paid. D) workers cannot do anything to improve their wage prospects for the future.
For equilibrium in an open four sector economy:
a) Actual injections = actual withdrawals b) Planned injections = planned withdrawals c) Savings = investment d) Government spending = tax revenue
Abby buys health insurance because she knows that she has health risks that wouldn't be obvious to an insurance company. Brad buys home owners insurance and then is less careful to make sure he's put out his cigarettes. The example with Abby
a. and the example with Brad illustrate adverse selection. b. and the example with Brad illustrate moral hazard. c. illustrates adverse selection; the example with Brad illustrates moral hazard. d. illustrates moral hazard; the example with Brad illustrates adverse selection.