One Reason for the Success That Firms Have in Getting

question 128

Multiple Choice

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify.Which of the following is a second reason?

• A)The costs that tariffs and quotas impose on consumers are large in total but relatively small per person.
• B)People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote.
• C)Firms that benefit from trade barriers have more money to lobby government officials to support the barriers than do firms that are harmed by trade barriers.
• D)The benefits from free trade are less than the costs.

Distinguish between different behavioral adaptations in human evolution.

Comprehend the concept of natural selection and its product, adaptations, in the context of evolution.

Understand the evolutionary basis of mating strategies and preferences.

Recognize domain-specific adaptations designed to solve evolutionary problems.

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Definitions:

Puts

Options contracts giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Underlying Security

The asset upon which a derivative contract, such as an option, is based.

Option

A financial derivative that represents a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price on or before a specified date.