As a general rule, free trade:
A. decreases the demand for factors of production that are domestically abundant.
B. increases demand for factors of production that are domestically abundant.
C. decreases the supply of factors of production that are domestically scarce.
D. increases the supply of factors of production that are domestically abundant.
Answer: B
You might also like to view...
Unions cannot exert market power without exerting control over the market supply curve for labor.
Answer the following statement true (T) or false (F)
Cyclical unemployment is
A. the unemployment due to the unemployment benefits and welfare programs of the government. B. the difference between the actual unemployment rate and the natural rate of unemployment. C. the unemployment due to union activities and government-imposed restrictions to entry into specific occupations. D. the difference between the unemployment rate when the economy is in a recession and the unemployment rate when the economy is at the peak of an expansion.
John derives more utility from having $1,000 than from having $100. From this, we can conclude that John
A) is risk averse. B) is risk loving. C) is risk neutral. D) has a positive marginal utility of wealth.
A market with easy entry could include
A) perfect competition. B) monopolistic competition. C) an oligopoly. D) a. and b. are possible