Macro Hw 21 real

Global trade tends to raise average productivity while lowering average wages.

False

What does WTO stand for?

World Trade Organization

The acronym GATT stands for:

General Agreement on Tariffs and Trade

_______________ are numerical limitations on the quantity of products that can be imported.

Import quotas

Which of the following would be expected if the tariff on foreign-produced automobiles were increased?

The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise

A tariff differs from a quota in that a tariff is:

a tax imposed on imports, whereas a quota is a limit to the number of units of a good that can be imported

The infant industry argument for protectionism suggests that an industry must be protected in the early stages of its development so that:

domestic producers can attain the economies of scale to allow them to compete in world markets

The two major tradeoffs of trade policy are:

income distribution and displacement of workers

Raising an existing tariff on grapes from Argentina will:

increase American consumption of domestically produced grapes

A new American import quota on imported steel would be likely to:

increase American production of steel