Your Roommate Hansen Argues That American Producers Cannot Compete with Foreign

question 64

Multiple Choice

Your roommate Hansen argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States.Hansen

• A)is incorrect.Free trade raises living standards by increasing economic efficiency.
• B)is right in asserting the need to protect high wages if the United States wishes to maintain its high standard of living.
• C)is correct in arguing that the high wages of U.S.workers make it impossible to compete with workers in low-wage countries.
• D)is advancing the anti-dumping argument for protectionism.

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Definitions:

Convergence

The act of moving toward union or uniformity, especially in a scientific, social, or psychological context.

Nearby Object

An item or thing that is physically close to a point of reference or location.

Gestalt Principle

A theory in psychology that proposes the human brain sees objects as whole forms rather than as a collection of parts.

Proximity

The state of being close to something or someone in distance or relationship.