Why might trade barriers be a highly ineffective technique for increasing domestic employment?

What will be an ideal response?

First, trade barriers lower living standards by making consumer goods more expensive. This means that consumers have less to spend on everything including domestic goods. Second, trade barriers invite retaliation that can hurt our exports and those employed in export industries. Even without retaliation, in the long run exports are hurt as foreigners have fewer dollars to spend on American goods since their imports to the U.S. have declined. Third, barriers limit the advantages to be gained by specializing in production where costs are relatively lower and prevent attaining the lower costs which specialization allows.
If the world has a more efficient allocation of resources and a higher level of material well-being as a result of free trade, it follows that in the long run barriers would reduce output and incomes throughout the world. A nation can have full employment with or without free trade, but without free trade workers will be employed less productively and their incomes will be lower.

Economics

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Suppose fiscal authorities raise state income tax rates. As a result, disposable income falls, thereby

A) decreasing consumption spending, and causing the aggregate demand curve to shift to the left. B) decreasing consumption spending, and causing a movement along a given aggregate demand curve. C) increasing saving, and causing the aggregate demand curve to shift to the left. D) increasing saving, and causing a movement along a given aggregate demand curve.

Economics

The research of Gavin Wright (1978) on the antebellum period suggests that

(a) there was no limit on the profitability of the plantation utilizing slave labor. (b) issues with management, communication and discipline limited the profitability of the slave plantation. (c) more than 75 percent of the Southern farms were plantations and utilized slave labor. (d) all of the above.

Economics