US-China Relationship Microeconomics Assessment

What is the main reason the trade relationship between the United States and China is considered crucial for global stability?

• The cultural exchange between the two countries.

• The influence each country has on the world.

• The military alliances they have formed.

• The geographical proximity of the two countries.

What type of economic system does the US have?

• Command economy.

• Socialist market system.

• Mixed capitalist system.

• Traditional economy.

What is one of the main negative externalities from China mentioned in the presentation?

• Specialized labor

• Theft of intellectual property

• Unintentional control of global demand and world economy

• Quality control

What is one of the main positive externalities from China?

• Specialized labor

• Cheapness and profitability from outsourcing

• Quality control

• Theft of intellectual property

What is one of the main advantages of the USA in production?

• Cheap labor

• Raw materials

• Specialized labor and quality control

• Pollution control

What is a major problem the US faces in its economic relationship with China?

• Over-subsidization, which causes over-saturation of markets

• Theft of intellectual property

• Cheap labor

• Raw materials

What is one main advantage of trading with China?

• Higher quality goods

• Cheaper prices for consumers

• Increased job opportunities and extremely high wages

• Better environmental standards

What is one of the negative impacts of tariffs on American companies, according to the presentation?

• Increased profit margins

• Higher wages for workers

• Acceptance of lower profit margins

• Expansion of jobs

How has the Biden's administration's policy towards China differed from the Trump's administration's?

• Biden's administration has imposed export controls to stop China from getting access to high-end semiconductors.

• Biden's administration has increased tariffs on Chinese goods.

• Trump's administration has subsidized its own high-technology and green industries.

• Trump's administration has pushed 'friendshoring' to build supply chains of critical raw materials.