Which of the following statements is true?

Protectionism is simply a method of requiring consumers to subsidize producers.

The subsidy is indirect as it is paid thru higher prices.

The subsidy is direct as it is paid thru money collected from tax payers.

All of the above

Question

2 of 25

There is sufficient evidence showing that union workers in the manufacturing sector generally:

Have lower productivity than non-union works

Have fewer years of experience than non-union workers

Tend to hold the union jobs for less time than non-union workers

Have higher productivity than non-union workers

Question

3 of 25

"Dumping" is the practice of selling goods below their cost of production." Which of the following statements is true in regards to dumping?

The WTO does not allow dumping and nations can file complaints with the WTO if they feel that they are the receiving end of dumped goods.

All nations who practice dumping are using this strategy to drive out domestic competition with the U.S.

Dumping tends to be cyclical, whereby dumping increases during recessions and depressions during economic booms.

Both A and C

Question

4 of 25

In the United States, the number of unionized government jobs have ________ and the number of unionized jobs in the manufacturing sector have ______________.

increased modestly; increased modestly

dramatically declined; trended down

increased modestly; trended down

modestly declined; declined dramatically

Question

5 of 25

The USA has decided to impose a 20% tax on imported automobiles.

This is a tariff.

This is an import quota.

This will reduce the number of imports of foreign automobiles and increase their sales price.

Both A and C

Question

6 of 25

Currently, there is a trend in international trade that economist call splitting up the value chain; the value chain

is a calculated value of all the input in the production of an output.

is where products are produced in one factory and assembled in another factor.

describes how products are produced in stages.

adds the value of all the inputs to determine the cost of goods.

Question

7 of 25

In the United States, worker membership in labor unions has been:

Mostly declining except between the economic downturn in 2008-2015

Steadily declining for the past 50 years

Steadily growing in the last decade

Steadily growing due to immigration

Question

8 of 25

The countries of China and India can produce two goods: Rice or Shirts. The table below describes the production possibilities of each country in a year.

Rice Shirts

China. 400 lbs. 200

India 330 lbs. 110

India has a comparative advantage and absolute advantage in the production of shirts.

China has a comparative advantage in the production of rice.

India has a comparative advantage in the production of rice.

India has a comparative advantage and absolute advantage in the production of rice.

Question

9 of 25

The area in which a producer's absolute disadvantage in productivity is relatively the least or where a producer's absolute advantage is relatively the greatest identifies its _________________.

comparative advantage

relative advantage

opportunity cost

None of the above

Question

10 of 25

________Is an organized association of workers, often in a trade or profession, formed to protect and further their rights and interests in such areas as wages and working conditions.

A federation

An Affirmative union

A Cooperative union

A Labor union

Question

11 of 25

Say the average increase in pay for a non-union worker in 2015 is 3% across the U.S. If a workers' union successfully negotiates a 3-year collective agreement that provides a 4.5 raise in 2015, and a 4.2% raise in 2016, then the for-profit employer will typically

curtail expansion of labor as a trade-off.

replace union workers with cheaper foreign labor.

hire non-unions workers and fire union workers.

begin to fire its older union workers and higher younger union workers.

Question

12 of 25

In the U.S labor market, the earnings gap between white and black workers

existed in the 1960's but was eliminated through union negotiations in the 1970's.

the gap still remains but it has diminished since the 1960's.

was completely eliminated by the end of the 1960's.

has not diminished at all since the 1960's.

Question

13 of 25

When the government legislates policies to reduce or block international trade, it is:

Engaging in protectionism

Enforcing tariffs

not blocking international trade

Following the World Trade organizations rules and procedures

Question

14 of 25

To achieve better economic outcomes, members of labor unions are able to use their

bargaining power.

cooperative nature.

monopsony power to drive wages up.

excess supply of labor.

Question

15 of 25

Alternate Outputs from One Day's Labor Input:

Wheat. Textiles

USA 24 Bushels 6 Yards

India 6 Yards 24 Bushels

The opportunity cost of on bushel of wheat in India is

4 yards of textiles.

12 yards of textiles.

1 yard of textiles.

3 yards of textiles.

Question

16 of 25

Union membership is lower in the United States than in many other high-income countries due to

different legal environments.

cultural attitudes toward unions.

lower overall population.

Both a and c

Question

17 of 25

Why do similar high-high income economies engage in intra-industry trade?

The division of labor leads to learning, innovation and unique skills and economies of scale.

The division of labor leads to learning, innovation and unique skills and opportunity costs.

They have an absolute advantage and economies of scale.

They have both a comparative advantage and absolute advantage.

Question

18 of 25

Since 1960, the earnings gap between men and women in the U.S. Labor market has ______; but in the 1970's it _______ and in the 1980's the earnings gap has _______________.

continued to rise; increased; declined steadily

continued to narrow; did not change much; risen slightly continued to narrow, did not change much; been declining continued to narrow; did not change much; not changed significantly

Question

19 of 25

The proportion of workers in a number of the world's high- income producing economies who belong to unions, when compared to union workers in the U.S. is

high, compared to France and Spain.

very high.

high, compared to Sweden and Austria.

very low.

Question

20 of 25

Union membership is highest in the ________________.

30-50 age range

40-65 age range

25-45 age range

45-64 age range

Question

21 of 25

________ involves active efforts to increase opportunities in the workplace or education for underrepresented parts of society such as minorities and women.

Affirmative action

Collective bargaining

Anti-discriminative action

Meritorious action

Question

22 of 25

Which of the following statements is not true?

A nation cannot have a comparative advantage in the production of every good.

A nation cannot have an absolute advantage in all goods.

A nation can have a comparative advantage in the production of every good but not and absolute advantage.

Both b and c

Question

23 of 25

Annual production per worker for the U.S.A and Ireland

Potatoes Wheat

USA. 1 ton 0.5 tones

Ireland 3 tons 2 tons

From the information in the chart above, we can conclude that:

The U.S specializes in wheat because of its absolute advantage in producing wheat.

There can be no mutual gains from trade.

The USA specializes in wheat because of its comparative advantage in producing wheat.

The USA specializes in potatoes because of its comparative advantage in producing potatoes.

Question

24 of 25

Some nations that seek to produce all of their own needs face the problem that:

They can deplete their natural resources as a result.

Some industries are too small to be efficient if restricted to their domestic markets alone.

They will not be able to satisfy the wants of all their citizens.

The opportunity cost of producing some of their own goods is lower than that of trading with others for them.

Question

25 of 25

After World War II the Taft-Hartley Act of 1947 was passed, it

specified that workers had a right to organize unions and that management had to give them a fair chance to do so.

gave states the power to allow workers to opt out of the union in their workplace.

requires employers with more than 100 employees to provide written notice 60 days before plant closings or large layoffs.

regulates employee pension rules and benefits.