A Group Opposed to Free Trade Concludes That If Free

question 212

Multiple Choice

A group opposed to free trade concludes that if free trade is adopted, the total number of domestic jobs will decrease because the group estimates that 20,000 jobs will migrate abroad. The actual total loss is

• A) greater than 20,000 because of the tariff effect.
• B) greater than 20,000 because of the multiplier effect.
• C) equal to 20,000 because of the import effect.
• D) less than 20,000 because the estimate ignores the jobs created in the industries that benefit from increased exports.

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Definitions:

Gross Profit

The difference between the revenue generated from selling goods or services and the cost of those goods sold, excluding other operating expenses.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor, used in calculating gross profit.

Selling Expenses

Costs incurred directly and indirectly in making sales, including advertising, commissions, and shipping expenses.

Operating Expenses

Ongoing costs for running a business that do not include the cost of goods sold but can cover expenses such as rent, utilities, and salaries.