Which of the Following Arguments Is Valid in the Economics

question 151

Multiple Choice

Which of the following arguments is valid in the economics of international trade?

• A) Trade restrictions are good ways to raise a country's employment.
• B) Protectionism increases the well-being of domestic consumers.
• C) Trade restrictions help to reduce child labor in poor countries.
• D) Trade can result in a net job gain in the whole country.

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Definitions:

MRP

Marginal Revenue Product; the additional revenue generated by employing one more unit of a factor, like labor or capital.

Substitutes

Products or services that can be used in place of each other, where the presence of one reduces the demand for another.

Price Capital

The valuation of capital assets based on their cost or market value, contributing to the overall price level of investments.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various price levels at a given period.