5. Trade destroys relatively less skilled jobs or low-wage jobs and creates relatively more skilled or high-wage jobs. a. True b. False
True
Explanation: Trade leads to specialization and leads to create of more skilled jobs at the cost of low-skilled jobs.
5. Trade destroys relatively less skilled jobs or low-wage jobs and creates relatively more skilled or...
Suppose a country with two types of workers, high skilled and low skilled, has a comparative advantage in biotechnology and a comparative disadvantage in shoes. Under the Stolper-Samuelson theorem, which predicts increasing inequality due to international trade, expansion of trade will result in: 1. the fall in the real wage rate of both skilled and unskilled labor 2. the fall in the real wage rate of skilled and unskilled labor in the shoe industry 3. the rise in the real...
Suppose the unemployment rate is very low. It will be ___ for firms to find workers to hire, and it will be ___ for workers to find jobs. Thus, ___ will have relatively more bargaining power than ___.As the unemployment rate gets low, the wage will ___. Thus, if the unemployment rate were ever to approach zero, the wage rate would become ___.
Patented information is more or less a trade secret but without the secret. True or False?
One point on which most economists agree is that: More productive economies should not trade with less productive economies Government spending impedes economic growth International trade should be restricted to protect jobs in the United States Voluntary exchange creates value The current income tax rates are too high
Which of the following is FALSE? Select one: a. Even when tariffs are relatively low, the cost per job saved tends to be high. b. Commercial policy is grossly inefficient at achieving the objective of job preservation. c. Trade barriers in high-income countries do not cause unintended consequences in low-income countries because most of their trade is with other industrialized countries. d. The analysis of agriculture, textiles, and clothing in the EU, the United States, and Japan supports the proposition...
Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they often characterize as “unfair” import competition. Is such competition “unfair”? Do you think that this argument is in the best interests of (a) the unions, (b)the people they represent, and/or (c) the country as a whole?
Question 13 1pts Suppose that the labor market for low skill jobs in California is close to a competitive labor market. Many of low skill labor are from Mexico and Central America. Some politicians are considering restricting immigration from these countries. This would cause a decrease in the supply of labor leading to an increase in the equilibrium wage and an increase in the equilibrium quantity of labor employed. a decrease in the supply of labor leading to an increase...
The loss of jobs due to international trade is often: Group of answer choices a) more visible than the decline in consumer prices due to international trade. b) less visible than the decline in prices due to international trade. c) greater than the benefit of trade in the form of decline in prices. d) spread across all sectors while decline in prices is concentrated in one sector.
A country will gain relatively more from trade when: A. trade is regulated. B. the world price is below the country's opportunity cost of the good. C. the world price is close to the country's opportunity cost of the good. D. the world price is much greater than the country's opportunity cost for the good.