Question 9 1 pts Questions 9-11 test your understanding of the arguments against international trade. 9. It's wrong to trade with countries that use child labor. Identify the appropriate response to this argument against international trade. A There are many substitutes for U.S.-produced goods and the U.S. would face retaliation in other sectors. B The real cause of child labor is poverty, not trade. Thus, to reduce child labor, we should focus on reducing poverty rather than on reducing trade; putting up trade barriers is likely to be ineffective or even counterproductive. C It's common for domestic producers in trouble to claim that their product is vital for national security when it isn't. O A O B OCQuestion 10 1 pts Questions 9-11 test your understanding of the arguments against international trade. 10. We need to keep certain industries at home for reasons of national security. Identify the appropriate response to this argument against international trade. A There are many substitutes for U.S.-produced goods and the U.S. would face retaliation in other sectors. B The real cause of child labor is poverty, not trade. Thus, to reduce child labor, we should focus on reducing poverty rather than on reducing trade; putting up trade barriers is likely to be ineffective or even counterproductive. C It's common for domestic producers in trouble to claim that their product is vital for national security when it isn't. O A O B OCQuestion 11 1 pts Questions 9-11 test your understanding of the arguments against international trade. 11. We can increase U.S. well-being with strategic trade protectionism. Identify the appropriate response to this argument against international trade. A There are many substitutes for U.S.-produced goods and the U.S. would face retaliation in other sectors. B The real cause of child labor is poverty, not trade. Thus, to reduce child labor, we should focus on reducing poverty rather than on reducing trade; putting up trade barriers is likely to be ineffective or even counterproductive. C It's common for domestic producers in trouble to claim that their product is vital for national security when it isn't. OA O B OCQuestion 12 1 pts Question 12 tests your understanding of the infant-industry argument for protection. 12. Which argument(s) below might be used effectively to refute the infant-industry argument for a protective tariff? (Choose four.) A Under competitive conditions entrepreneurs make better use of the division of knowledge than a centralized government. B Under competitive conditions entrepreneurs have a greater incentive to choose profitable ventures than a government that receives revenue from the tariff. C In the real world a tariff may be introduced in response to political pressure rather than economic logic. D In the real world special interests work to keep a tariff in place after the infant industry has matured. E The prospective losses to the consumers who now buy more expensive home-produced goods in place of cheaper imports are less than the prospective gains to the domestic producers who now sell more of the good. O A O B OC OD DE