Trade restrictions limiting the sale of cheap foreign goods
“Trade restrictions limiting the sale of cheap foreign goods in the United States are necessary to protect the prosperity of Americans.” Evaluate this statement made by an American politician.
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Consider two occupations (A and B) that employ people with the same skills and abilities. When employed, workers in the two occupations work the same number of hours per day.
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In a market economy, investors have a strong incentive to undertake profitable investments. What makes an investment profitable? Do profitable investments create wealth? Why or why not? Do all investments create wealth? Discuss.
Why do American households and businesses buy things from foreigners? What are the characteristics of the items we buy from foreigners? What are the characteristics of the things we sell to foreigners?
Trade restrictions limiting the sale of cheap foreign goods in the United States are necessary to protect the prosperity of Americans
Tariffs and import quotas promote economic inefficiency and reduce the real income of a nation. Economic analysis suggests that nations can gain by eliminating trade restrictions
How do tariffs and quotas differ? Can you think of any reason why foreign producers might prefer a quota rather than a tariff? Explain your answer.
It is often alleged that Japanese producers receive subsidies from their government permitting them to sell their products at a low price in the U.S. market.
The share of airline tickets bought over the Internet has grown rapidly, whereas the percentage of groceries purchased online remains minuscule. What factors likely explain this difference?
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