The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?
A) Trade can have significant harmful effects on some segments of a country's economy.
B) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial.
C) Import restrictions are the result of trade wars between hostile countries.
D) Imports are only restricted when foreign-made goods do not meet domestic standards of quality.
E) Restrictions on imports can have significant beneficial effects on domestic consumers.
A
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In the example of good and bad cigarettes, the authors found that bad cigarettes where inferior because
a. they are an economic bad. b. second hand smoke is an economic bad. c. they comprised a large portion of the smokers budget. d. many more useful goods are also inferior.
As the quantity of a good consumed increases, its marginal utility ________ and its total utility ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
A given supply curve illustrates
A) the relationship between price and quantity supplied. B) the effect of a change in resource costs on quantity supplied. C) the effect of a change in technology on quantity supplied. D) the relationship between expected future prices and quantity supplied.
In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm, total revenue is
A. $130. B. $70. C. $100. D. $30.