Shimko Ch 6 136-140

Where is there always free trade?

• Domestically.

• Internationally.

• Between democracies.

• Between capitalist countries.

Excessive inspection regulations that make it difficult to import agricultural products are examples of __________________ that can impede free trade just as much as traditional means of protectionism.

• tariffs

• nontariff barriers

• import taxing

• free trade

Free riders restrict access to their markets while enjoying access to foreign markets.

• True

• False

Dumping and predatory pricing

• are often the result of government subsidies

• were favored by David Ricardo.

• are promoted by the WTO.

• were denounced by Friedrich List.

• are examples of free trade

A situation in which one person’s loss is another person’s gain is often described as

• comparative advantage.

• zero-sum.

• positive-sum

• realism.

The assumption that the interests of individual consumers are consistent with the interests of the larger society and nation

• is an integral part of the case for free trade.

• is an integral part of the case against free trade.

• was advanced by Friedrich List.

• was rejected by David Ricardo.

Division of Labor means (pick 2)

• that you don't have to produce every thing that you want to use.

• you specialize and then trade for the things you don't make yourself.

• you should only make the things that you have a geographic or demographic comparative advantage in.

• you make everything you need within your own nation and try to avoid imports.

The benefits of protectionism are

• quick and easy to notice

• long term and hard to notice

Downsides of protectionism

• higher prices

• people have less money to spend on other goods

• no reason for protected industry to innovate

• could provoke increased protectionism in other countries

• makes factories move overseas

Why did George Bush impose tariffs on imported steel?

• To win some important votes for his election.

• He was always against free trade.

• He actually didn't impose any tariffs.

• Because he wanted to increase outsourcing.