Arguments made against free trade include all of the following except
A) national defense considerations justify producing certain goods domestically whether the country has a comparative advantage in their production or not.
B) infant industries should be protected from free trade so that they may have time to develop and compete on an even basis with older, more established foreign industries.
C) dumping is an unfair trade practice that puts domestic producers of substitute goods at a disadvantage that they should be protected against.
D) free trade is inflationary and should be restricted in the domestic interest.
E) if foreign governments subsidize their exports, foreign firms that export are given an unfair advantage that domestic producers should be protected against.
D
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In the short-run macro model, planned investment is defined as
a. plant and equipment purchases by business firms plus inventory changes b. plant and equipment purchases by business firms plus new home construction c. plant and equipment purchases by business firms d. new home construction plus inventory changes e. inventory changes
To an economist, theory can be thought of as
a. abstraction for the sake of argument. b. one person's opinion, which is just as good as another's. c. another term for the description of a situation. d. beliefs which cannot necessarily be verified. e. explanation of mechanisms behind observed phenomena.