The main argument against using trade restrictions to retaliate against a country that raises its trade restrictions against you is
a. international trade may be further reduced between the two countries and your gains from trade become even smaller
b. war may occur if mutual retaliations get out of hand
c. both countries may find that they have greater access to each other's markets
d. black markets will thrive as entrepreneurs find ways to enter each country's markets
e. population will migrate from one country to the other in search of higher-paying jobs
A
You might also like to view...
Which of the following statements is TRUE about the long-run and short-run aggregate supply curve in the classical model?
A) The long-run aggregate supply curve is vertical, and the short-run curve is horizontal. B) The long-run aggregate supply curve is not defined, and the short run curve is vertical. C) The long-run and short-run curves start out horizontal and eventually become vertical. D) The long-run curve is vertical, and there is no short-run curve since all adjustments occur quickly.
As disposable income increases, consumption:
A. may either increase or decrease depending on the mpc. B. decreases. C. may either increase or decrease depending on the wealth effect. D. increases.
The theory that there is no predictable trends in securities prices is the
A) opportunity cost of capital. B) random walk theory. C) capital reinvestment. D) present value.
When all else is held constant, during recessions government
(a) revenues and expenditures increase. (b) revenues increase and expenditures decrease. (c) revenues decrease and expenditures rise. (d) revenues and expenditures decrease.