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13 Apr 2021

In free-enterprise systems around the world, there are:

1. no restrictions on business ownership or business activity.
2. some restrictions on business activity but not on business ownership.
3. some restrictions on business ownership but not on business activity.
4. some restrictions on business ownership and business activity.

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Divya Singh
Divya SinghLv10
17 Apr 2021
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Related questions

2. Which of the following is not used as an argument for trade restrictions?

a. Emerging domestic industries, especially those with economies of scale, could not gain entry in some world markets without protection during the early years

b. Trade restrictions are required to prevent some countries from exporting a commodity at a price below its cost of production.

c. Consumer surplus is maximized when import tariffs and quotas promote exports over imports.

Question One feature of the U.S. and other nominally free market capitalist economies are constant calls for government to interfere in the operation of the market.

These proposed intrusions take many forms--taxes, regulations, restrictions on trade, quotas, and banning production, trade and consumption of selected goods.

Pick all that apply to the question

1 In the case of international trade, removing restrictions on imports, e.g. tariffs and trade bans, would make consumers better off by lowering prices..

2 In the case of international trade, removing restrictions on imports, e.g. tarriffs and trade bans, the gain to consumers far outweighs the loss to selected domestic workers and producers leaving the general population better off overall.

3 In the case of international trade, removing restrictions on imports, e.g. tariffs and trade bans, would make owners and workers at firms competing with imports worse off.

4 None of the answers are correct.

5 In the case of international trade, restrictions on imports, e.g. tariffs and trade bans, are an example where eliminating those restrictions would create a large benefit to the general population and a small loss to firms that would face competition from overseas firms.

Step 1: Read the following scenario.

Imagine that China opens its borders to international trade, but with greater restrictions than the U.S. and European Union (EU). They impose a tariff of ¥10 per dollar value of each imported good and an import quota on all goods, as well as other health, safety, and regulatory barriers.

Step 2: Identify the winners and losers and answer the following questions.

Who stands to gain and who stands to lose in China, the U.S., and members of the EU?

What are the potential impacts that these restrictions may have on international trade?

What are the potential justifications for the implementation of these trade restrictions?

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