Author Question: The main explanation for why the cheap foreign labor argument is a poor reason for restricting ... (Read 53 times)

LaDunn · **on:** Jun 30, 2018

The main explanation for why the cheap foreign labor argument is a poor reason for restricting international trade is that:
a. workers who get paid less tend to have lower productivity than those who get paid more.
b. all firms and workers gain when there are no restrictions on international trade.
c. infant industries such as steel and automobiles need to be protected.
d. specialization and free trade usually raise the prices of all the traded goods, so that the workers can get paid more.
e. labor costs tend to be the same worldwide in the long run because of worker mobility.

Question 2

If, for a given disposable income level, the disposable income line lies above the consumption curve, saving:
a. equals consumption.
b. equals disposable income.
c. is less than zero.
d. is equal to zero.
e. is greater than zero.