When Ross Perot Ran for President as a Third Party

question 79

Multiple Choice

When Ross Perot ran for president as a third party candidate in the 1992 presidential elections, he argued that free trade with Mexico would result in massive job losses in the United States because Mexican wages were so low.Which of the following is the best explanation of why few economists agreed with Perot?

• A)Economists did not believe that any jobs would be lost in the United States.
• B)Economists believed that the U.S.unemployment rate would rise.
• C)Although economists agreed that in some areas the United States would lose jobs, they expected that the United States would gain jobs in other areas.
• D)Although economists predicted that unemployment would rise, the increased profits of corporations would raise stock prices enough to compensate for the lost jobs.

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Definitions:

Utility Maximization

The process by which individuals allocate their resources to maximize their satisfaction or utility.

Marginal Utility

The added gratification or usefulness experienced by a buyer when they consume an additional unit of a good or service.

Utility Maximization

The economic principle that individuals or firms strive to get the greatest satisfaction or benefit from their available resources.

Marginal Utility

The enhanced gratification or value a customer derives from consuming another unit of a good or service.