Feenstra and Taylor Describe the "Magnification Effect" of Trade

question 12

Multiple Choice

Feenstra and Taylor describe the "magnification effect" of trade. This effect describes how:

• A) workers tend to complain more about trade than is justified.
• B) owners of capital can "magnify" their earnings if they are able to trade.
• C) small changes in relative prices as a result of trade lead to larger long-run changes in the real wage or rental of factors.
• D) unemployment is a big problem among workers but not capital because workers have to move when they are laid off.

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Definitions:

Juristat Reporting Survey

A statistical survey conducted to collect and analyze data on crime and justice in Canada.

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A nationwide effort by law enforcement agencies to collect and report data on crime, providing a systematic measure of the incidence of crime.

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A sociological survey used to collect data on demographic characteristics and attitudes of the United States population.

Victimless Crimes

Offenses lacking an identifiable victim; crimes where the perpetrator is not clearly causing direct harm to another person.