Chapter 31: The $750,000 Steelworker

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In any discussion of the consequences of restrictions on international trade:

1) pay for imports with exports 2) voluntary trade is mutually beneficial to the trading partners

sales of domestically produced automobiles fell from nine million units in 1978 to an average of 6 million units per year between _____ and _____.

1980, 1982

We are told that if we do not voluntarily reduce the amount of imported goods we purchase, the government will impose either tariffs (taxes) on imported goods or quotas (quantity restrictions) that will physically limit _____.

imports

Due in part to the enhanced quality of imported cars, sales of domestically produced automobiles fell from _____ million units in 1978 to an average of _____ million units per year between 1980 and 1982.

nine, six


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