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