The argument that foreign trade should be restricted to protect domestic employment and output is based on the idea that:
A. consumers are willing to pay higher prices for domestic goods.
B. producers will not exploit reduced foreign competition by charging higher prices.
C. foreign companies are more costly to deal with than domestic companies.
D. sales of imports come at the expense of domestic goods and jobs.
Answer: D
You might also like to view...
Adult population 200 million labor force 150 million employed persons 138.75 million Discouraged workers 10.5 million According to the accompanying labor data, the unemployment rate is
What will be an ideal response?
What is the difference between the absolute and relative concepts of poverty? What are the major problems in measuring poverty with them?
What will be an ideal response?
A firm with market power faces the following estimated demand and average variable cost functions:Qd = 39,000 - 500P + 0.4M - 8,000PRAVC = 30 - 0.005Q + 0.0000005Q2where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $2. Total fixed cost is $100,000. What is the profit-maximizing choice of output?
A. 10,000 units B. 12,000 units C. 0 units, the firm shuts down D. 16,000 units E. 8,000 units
Which of the following firms have no market power?
A. clothing companies B. fast food chains such as McDonald's C. theme parks D. gold panners during the gold rush