What is one potential negative consequence associated with free trade?
(1 point)
Responses
Import and export taxes are high under free trade.
Buyers and sellers can no longer make price decisions.
Countries that practice free trade have high unemployment
People in certain industries earn lower wages or sell fewer products.
People in certain industries earn lower wages or sell fewer products.
Which policy would be in the best interests of consumers?
(1 point)
Responses
increasing tariffs
increasing tariffs
decreasing minimum wage
decreasing minimum wage
breaking up large companies to increase competition
breaking up large companies to increase competition
changing loan interest rates to encourage saving rather than borrowing
changing loan interest rates to encourage saving rather than borrowing
breaking up large companies to increase competition
Which statement best explains why division of labor increases labor productivity?
(1 point)
Responses
Employers can pay workers more money when they get more done.
Employers can pay workers more money when they get more done.
Employers must fire some of their workers so fewer people have to get the work done.
Employers must fire some of their workers so fewer people have to get the work done.
Workers learn to do their jobs more quickly when they repeat the same tasks.
Workers learn to do their jobs more quickly when they repeat the same tasks.
Workers try to work more quickly because their jobs are more boring.
Workers try to work more quickly because their jobs are more boring.
Workers learn to do their jobs more quickly when they repeat the same tasks.
A country has an economic boom and can afford to increase imports from a second country. What is likely to happen in the second country?
(1 point)
Responses
a recession
a recession
an economic boom
an economic boom
a depression
a depression
increased taxes
an economic boom
The United States signs a free trade agreement with another country that has dramatically different resources. How would this trade treaty affect the United States?
(1 point)
Responses
Businesses will most likely not offer a variety of products.
Businesses will most likely not offer a variety of products.
Consumers will face higher prices as trade deficits increase.
Consumers will face higher prices as trade deficits increase.
Industries will increasingly focus on using interdependence.
Industries will increasingly focus on using interdependence.
Producers will be put out of business as more interesting products enter the market.
Industries will increasingly focus on using interdependence.
How would supply shift caused by lower costs of production affect price and quantity?
(1 point)
Responses
higher price, lower quantity
higher price, lower quantity
lower price, lower quantity
lower price, lower quantity
lower price, higher quantity
lower price, higher quantity
higher price, higher quantity