One main point of Frederic Bastiat's satire is that:
A. Employment and jobs is the single most important measure of the standard of living
B. We should not try to produce what we can get from others at a lower cost
C. Some industries may reasonably require protection in order to grow
D. Exporting is always a worthwhile activity to be supported and enhanced
B. We should not try to produce what we can get from others at a lower cost
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The impact of fiscal policy is
A) magnified because of crowding out and weakened because of crowding in. B) magnified because of crowding in and weakened because of crowding out. C) magnified because of crowding out and crowding in. D) weakened because of crowding out and crowding in.
Situation 32-1 In the early 1980s, the U.S. automobile industry managed to influence the government to negotiate a voluntary export restraint agreement with Japan that was in effect from 1981 until 1985. The predictable result was an average increase in the price of Japanese cars by about $1,000 and of U.S. cars by about $370. Also, as a result of the import quotas, 26,000 new jobs were "created"
in the U.S. automobile industry. Refer to Situation 32-l. At the time the total yearly salary (including all the benefits) of the average auto worker was no more than $50,000 per year, and the cost per job saved was estimated at $160,000 per worker per year. We can conclude that A) import quotas are a cost-efficient way of saving jobs. B) the U.S. auto industry, through its lobbying efforts, managed to promote the general public interest. C) the net social benefits of import quotas were positive. D) all of the above E) none of the above