Critics argue that concern about labor practices in other countries is often used to justify protectionism. Is this a reasonable criticism? Explain
What will be an ideal response?
Special interests sometimes use the issue of labor standards as a means to justify their real goal, protection against foreign competition. Low- and middle-income countries tend to have abundant supplies of unskilled labor and they depend on low-wage, low-productivity jobs for a large share of their employment. In these countries, proposals to set labor standards and to use trade barriers as an enforcement mechanism are widely viewed as a form of protectionism on the part of high-income countries. Given that most high-income countries continue to protect their markets in key areas of developing country activity such as agriculture, clothing, and textiles, there is a strong suspicion that calls for labor standards are a way to undermine the comparative advantage of low-income countries and to close the markets of high-income countries in selected areas.
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Which of the following statements is correct?
A. When marginal utility is positive, an increase in the quantity consumed will increase total utility. B. When marginal utility is zero, an increase in the quantity consumed will make total utility zero. C. When marginal utility is decreasing, an increase in the quantity consumed will decrease total utility. D. When marginal utility is positive, an increase in the quantity consumed will decrease total utility.
Everything else held constant, when bonds become less widely traded, and as a consequence the market becomes less liquid, the demand curve for bonds shifts to the ________ and the interest rate ________
A) right; rises B) right; falls C) left; falls D) left; rises
Unlike the GATT system, in the WTO dispute settlement process, the findings of the panel
a. are only recommendations that are not legally enforceable. b. can be overturned only by a unanimous vote. c. can be rejected by the accused party. d. can be vetoed by a single vote.
The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:
A. market economy. B. command economy C. soviet economy. D. traditional economy.