The main argument given by economists in favor of free trade is based primarily on
A.Gains from trade
B.Limiting government influence
C.The romance of foreign goods
Correct option is (A).
Economists argue that free trade without any trade barriers leads to a decrease in domestic price of the imported good, which increases consumer surplus more than the decrease in producer surplus. Therefore, free trade increases social surplus.
The main argument given by economists in favor of free trade is based primarily on A.Gains...
QUESTION 9 Economists generally favor free trade because it allows consumers to receive more goods and at a lower cost it protects domestic markets it may cause some job loss none of the above QUESTION 10 A government mandated price that is above the equilibrium price is called a price floor a price ceiling O a price wall O a price toilet QUESTION 11 In the supply/demand framework, a price that is below the equilibrium price will create a surplus...
Few countries truly practice free trade. Yet, most economists continue to argue that free trade is a desirable policy . This rests on 2 main arguments. First, is the case for the efficiency gains from free trade that is basically the cost-benefit analysis . Second - many economists believe that free trade produces far more gains that go beyond the cost -benefit analysis. What are your thoughts, and what might be some of the gains that go beyond the cost-benefit...
question/ The economic argument supporting free trade is based on the principle of: absolute advantage comparative advantage. protection tariffs and quotas.
Economists generally believe that free trade is good for the economy. Which of the following describes a tradeoff of free trade? Free trade causes some to lose their job from higher competition OFree trade causes inflation from restricted production Free trade costs money due to the subsidies it requires Free trade leads to more efficient production O None of these
6. If the relative opportunity costs of producing goods are identical across countries, then there are tary p A. no gains from trade. for t B. gains from trade if trade is based on absolute advantage mand C. gains from trade if trade is based on comparative advantage pply D. gains from trade that depend on the degree of competition between intemational traders. nd fo 7. The text lists three reasons why economists and non-economists see the pros and cons...
Most economists use the aggregate demand and aggregate supply model primarily to analyze which of the following? Select one: a. productivity and economic growth O b. short-run fluctuations in the economy O C. the effects of macroeconomic policy on the prices of individual goods d. the long-run effects of international trade policies > In which situation would the long-run aggregate- supply curve shift left? Select one: a. if there is a hurricane O b. if the capital stock increases c....
4.) a. Compare and contrast the impact to trade of Quotas and Tariffs. b. Some economists have argued that, because domestic consumers gain more from free trade than domestic producers gain from (import) tariffs and quotas, consumers should buy out domestic producers and rid themselves of costly tariffs and quotas. If this was feasible, would you be in favor? If there is a net loss to society from tariffs, why do tariffs exist?
CCIO An argument for trade restrictions that stresses being able to domestically produce all the products need for the military. An argument for trade restrictions that stresses protecting newly formed industries from foreign competition. Selling of excess goods in a foreign market at a price below the cost of production. Hiring an outsider to take over a particular function of a business. Outsourcing functions to a firm in another country. The net of all foreign trade, investment, and other transactions....
match the argument with the response suggested by economi Match the argument with the response suggested by economists. The jobs argument: Trade should be restricted A Trade restriction causes domestic prices to rise. The cost because it destroys jobs in industries that compete with imports to consumers exceeds the lost earnings of workers who lose their jobs. It would be cheaper to pay the workers The dumping argument When a producer sells a retaliation from trading partners will shrink employment...
Microeconomics – Week #8 Assignment Trade Restrictions - Tariffs Directions: Answer the questions below based on the graph. 1. How many units will the domestic firms produce without trade? 2. How many units will the domestic firms produce without a tariff if the foreign producer can sell the product at a $4 price? 3. How many units will the foreign firms produce / sell if a government tariff of $2.00 is imposed on foreign goods? 4. What will be the...