The Argument That Import Restrictions Save Jobs and Promote Prosperity

question 154

Multiple Choice

The argument that import restrictions save jobs and promote prosperity fails to recognize that

• A) there are no secondary effects of import restrictions.
• B) import restrictions will lower prices in the protected industries.
• C) import restrictions cannot create jobs in any industries.
• D) U.S. imports provide people in other countries with the purchasing power required for the purchase of U.S. exports.

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Definitions:

Thematic Apperception Test

A projective psychological test in which subjects reveal their underlying emotions, attitudes, and needs through the stories they make up about ambiguous pictures.

MMPI

The Minnesota Multiphasic Personality Inventory, a standardized psychometric test of adult personality and psychopathology.

Demand Characteristics

Subtle cues or signals in an experiment that communicate to participants how they are expected to behave or respond.

Overconfidence Effect

A cognitive bias where an individual's subjective confidence in their judgments is greater than the objective accuracy of those judgments.