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11) In poorer countries, free trade ________ the demand for

Question : 11) In poorer countries, free trade ________ the demand for : 1418215

 

 

11) In poorer countries, free trade ________ the demand for labour in these countries and ________ the wages paid in these countries.

A) decreases; lowers

B) decreases; raises

C) increases; lowers

D) increases; raises

E) increases the supply and decreases; lowers

 

12) Which of the following statements is true?

A) International trade raises wages in developing countries.

B) International trade with rich industrial countries forces people in the developing countries to work for lower wages.

C) International trade leads to job losses in both import competing industries and exporting industries.

D) Unlike other types of international trade, offshoring does not bring any gains from trade.

E) All of the above.

 

13) The argument that protection ________.

A) penalizes poor environmental standards is true

B) allows us to compete with cheap foreign wages is true

C) is necessary for infant industries is true

D) saves jobs is flawed

E) prevents rich countries from exploiting poor countries is true.

14) Which of the following is an explanation for the existence of trade restrictions?

A) tariffs generate revenue for the government

B) rent seeking

C) inefficient quotas

D) both A and B

E) both A and C

 

15) In industrial countries, there is more reliance on ________, as opposed to ________ for government revenue.

A) tariffs; tax collection

B) import quotas; tariffs

C) tariffs; import quotas

D) import quotas; tax collection

E) tax collection; tariffs

 

16) In developing countries, there is more reliance on ________ as opposed to ________ for government revenue.

A) tariffs; tax collection

B) import quotas; tariffs

C) tax collection; tariffs

D) tariffs; import quotas

E) import quotas; tax collection

 

17) Of the groups listed below, which is most likely to lobby for protection?

A) workers in the import industry

B) workers in the export industry

C) consumers in the import industry

D) producers in the export industry

E) All of the above.

18) Rent seeking is one reason why countries choose to

A) export and import the same goods.

B) work for freer trade.

C) follow the theory of comparative advantage.

D) hire foreign labour.

E) restrict trade.

 

19) When considering rent seeking, which of the following is TRUE?

A) The anti-free trade group generally will lobby more than the pro-free trade group.

B) The pro-free trade group generally will lobby more than the anti-free trade group.

C) Usually only the anti-free trade group is concerned about what is best for society at large.

D) Only the pro-free trade group is concerned about the government's revenue from tariffs.

E) None of the above.

 

20) One reason that international trade is restricted is that

A) the individual gain to parties who benefit from the protection will be much larger than the individual loss to parties who lose.

B) the government completely pays the losers from international trade for their losses.

C) protectionism benefits consumers.

D) the government cannot measure the cost of protectionism.

E) tariff revenue raises more income than income taxes in industrial countries.

 

 

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