Which of the Following Is Correct

question 22

Multiple Choice

Which of the following is correct?

• A) An increase in the tariff on foreign-produced automobiles will benefit U.S. consumers of domestic cars.
• B) An ongoing result of the North American Free Trade Agreement is that producers in both countries will benefit at the expense of consumers.
• C) The wages of U.S. workers would sharply decline if we traded freely with low-wage countries like India and China.
• D) Exports provide a nation with its primary source of purchasing power used to buy imported goods.

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Definitions:

High-income Countries

Nations with a high gross national income per capita compared to other countries.

Wage Rates

The standard amount of pay given for work performed, typically expressed on an hourly, daily, or piecework basis.

Total Wage Income

The sum of all wages received by individuals within an economy, organization, or sector over a specified period.

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate in a certain period.