Answer: removed 17) Trade adjustment assistance has been criticized by free market advocates because, in their view, it: Answer: encourages people to change their behavior for the worse. is narrowly focused only on workers threatened by imports. 18) If an activity has a marginal social benefit (SMB) in excess of its marginal private benefit (MB) and price (P),
Jan 17, 2014 · McConnell - COI 01 #117 Topic: Trade-related issues 118. Critics of Trade Adjustment Assistance argue that: A. the small fraction of workers losing jobs to international trade are no more deserving of assistance than others suffering job loss. B. it raises price for consumers. C. it keeps firms operating in industries where they are no longer competitive.
Jun 18, 2015 · Concerning international dumping many economists argue that fair value should be. ... Course Title ECON 6367; Type. Homework Help. Uploaded By Chancellor1855. Pages 17 Ratings 100% (14) 14 out of 14 people found this document helpful; This preview ...
Apr 16, 2013 · Chapter 05 - The United States in the Global Economy 116. The Trade Adjustment Assistance Act of 2002: A. enacts temporary tariffs to enable firms hurt by foreign competition to transition to new industries or improve their international competitiveness. B. subsidizes firms for a maximum of 2 years as they try to establish themselves in foreign markets. C. provides price …
Unemployment insurance (UI) is paid by states and the federal government to people who have lost their jobs through no fault of their own (ie: did not quit, and were not fired for misconduct). It is what economists call a counter-cyclical program, pumping money into the economy when the private sector stalls.
The News. Today the Senate is expected to renew unemployment insurance benefits after months of partisan wrangling. The new law would not extend unemployment benefits past their 99-week duration. Instead it would retroactively compensate 2.5 million Americans who have lost benefits in the last six weeks, and extend the current program ...
In normal times, states pay for up to 26 weeks of unemployment insurance with a payroll tax. Some choose to provide extended benefits. The federal government fills a rainy fund and splits the cost of the extended benefits by collecting $56 per worker, nationwide. In the last two years, Washington took over the extended benefits program.
To be sure, UI might increase the unemployment rate slightly. The San Francisco Fed concluded that extended benefits added 0.4 percentage points to the unemployment rate. But in an economy with five unemployed for every job opening, Americans don't need unemployment benefits to discourage them from working.
Unemployment insurance might even be good for the economy. The Congressional Budget Office and economist Mark Zandi of Moody's both said extending UI was one of the most effective ways to stimulate in a downturn -- above tax cuts or infrastructure spending.
5 Advantages of Free Trade 1 It stimulates economic growth: Even when limited restrictions like tariffs are applied, all countries involved tend to realize greater economic growth. For example, the Office of the US Trade Representative estimates that being a signatory of NAFTA (the North American Free Trade Agreement) increased the United States’ economic growth by 5% annually. 2 It helps consumers: Trade restrictions like tariffs and quotas are implemented to protect local businesses and industries. When trade restrictions are removed, consumers tend to see lower prices because more products imported from countries with lower labor costs become available at the local level. 3 It increases foreign investment: When not faced with trade restrictions, foreign investors tend to pour money into local businesses helping them expand and compete. In addition, many developing and isolated countries benefit from an influx of money from U.S. investors. 4 It reduces government spending: Governments often subsidize local industries, like agriculture, for their loss of income due to export quotas. Once the quotas are lifted, the government’s tax revenues can be used for other purposes. 5 It encourages technology transfer: In addition to human expertise, domestic businesses gain access to the latest technologies developed by their multinational partners.
Free trade is a largely theoretical policy under which governments impose absolutely no tariffs, taxes, or duties on imports, or quotas on exports. In this sense, free trade is the opposite of protectionism, a defensive trade policy intended to eliminate the possibility of foreign competition. In reality, however, governments with generally ...
Today, 164 countries, accounting for 98% of all world trade belong to the WTO. Despite their participation in FTAs and global trade organizations like the WTO, most governments still impose some protectionist-like trade restrictions such as tariffs and subsidies to protect local employment.
Robert Longley is a U.S. government and history expert with over 30 years of experience in municipal government. He has written for ThoughtCo since 1997. In the simplest of terms, free trade is the total absence of government policies restricting the import and export of goods and services. While economists have long argued ...
It can harm the environment: Emerging countries have few, if any environmental protection laws. Since many free trade opportunities involve the exporting of natural resources like lumber or iron ore, clear-cutting of forests and un-reclaimed strip mining often decimate local environments.
For example, the North American Free Trade Agreement (NAFTA), between the United States, Canada, ...
Mercantilism is the theory of maximizing revenue through exporting goods and services. The goal of mercantilism is a favorable balance of trade, in which the value of the goods a country exports exceeds the value of goods it imports. High tariffs on imported manufactured goods are a common characteristic of mercantilist policy. Advocates argue that mercantilist policy helps governments avoid trade deficits, in which expenditures for imports exceeds revenue from exports. For example, the United States, due to its elimination of mercantilist policies over time, has suffered a trade deficit since 1975.
The Consumer Price Index (CPI) is an estimate of the average change in prices over time paid by urban consumers for a market basket of consumer goods and services in the United States . The CPI is used extensively in many different ways, including three major uses: to adjust historical data, to escalate federal payments and tax brackets, ...
The CPI measures price changes based on a representative sample of items (goods and services), so the published indexes differ from estimates based on actual records of all retail purchases by everyone in the index population. The CPI collects around a million prices per year, but this is only a tiny fraction of all the prices in the economy. Like other surveys that make estimates based on samples of data, the CPI is subject to sampling error. In the case of the CPI, we can think of this error as the difference between the CPI estimate and what the estimate would be if the CPI was able to collect all prices. Sampling error is really a measure of uncertainty; the level of uncertainty can be measured by a statistic known as standard error. The precision of the CPI estimate is limited by sampling error. The CPI publishes measurements of sampling error for all of its indexes.
Because the CPI seeks to approximate a cost of living index (COLI), the CPI is, conceptually, a constant-quality index. Thus, when the quality of goods and services in the market basket changes, the CPI must make some estimate of the value of such changes. This is a source of controversy in the CPI, but disagreement over the valuation ...
Sampling error greatly influences the precision of the CPI, but the issue of bias may be of greater concern to the accuracy of the indexes. Bias is defined as the difference between the expected value of an estimator and the true value being estimated. This is a different and perhaps more serious issue than sampling error. In general, sampling error tends to even out in the long run, but if the CPI is persistently understating or overstating inflation because of a bias, a growing gap between true price change and the CPI measure will occur.
The Chained Consumer Price Index (C-CPI-U), a supplemental index introduced in 2002, uses updated expenditure weights; rather than make any assumptions about substitution, it derives it weights from expenditure measures both before and after a price change. It is thus free of upper-level substitution bias.