Which of the following is a TRUE statement?
A. Consumers benefit from trade and producers do not.
B. Everyone benefits from free trade.
C. Exporters benefit from trade and importers do not.
D. Free trade harms domestic producers of goods that face import competition.
Answer: D
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Present value analysis suggests that the real rate of return on Social Security is
A. around 10% for workers of all income levels. B. roughly 3% for high-income earners and negative for low-income earners. C. more than 10% for high-income earners. D. roughly 3% for low-income earners and negative for high-income earners.
In the Fable of the Bees, it was found that contrary to popular belief among economists, but consistent with the Coase Theorem
a. apple growers would pay bee keepers for pollination services. b. bee keepers would pay orchard owners for access to their flowering trees. c. apple growers and bee keepers would reimburse each other for increasing output. d. the transactions costs of negotiating prevented any agreements from being reached between orchard owners and bee keepers.
Adverse selection is a situation in which one party, as a result of a contract, has an incentive to alter their behavior in a way that harms the other party to the contract
a. True b. False
Which of the following is NOT a club good?
A) cable television B) a rock concert C) a country club D) a baseball bat