Economists Generally Agree That

question 37

Multiple Choice

Economists generally agree that:

• A) trade restrictions will increase the welfare of a large country even if other countries retaliate.
• B) trade between two nations generally benefits one at the expense of the other.
• C) infant industry protection, although justified in theory, often becomes permanent because infant industries fail to grow up.
• D) trade sanctions are not an effective way of achieving international political objectives.

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Definitions:

Factor Analysis

A statistical procedure that identifies clusters of related items (called factors) on a test; used to identify different dimensions of performance that underlie a person’s total score.

Algorithms

Step-by-step procedures or formulas for solving problems, often employed in the fields of mathematics and computer science.

Availability Heuristic

A cognitive shortcut that depends on the first examples that spring to mind when one assesses a particular topic, concept, strategy, or choice.

Framing Effect

The influence of context or the way information is presented on how it is perceived and interpreted.