Question

6: Why do many policymakers support trade alliances, like the North American Free Trade Agreement (NAFTA)?

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1 point
Because they allow the US to engage in a form of protected global free trade
Because they always benefit the US economy exclusively
Because they only help other developing countries
Most policymakers do not supper trade alliances at all

7: Why is global trade important to the US economy?
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1 point
It actually only harms the US economy and more protectionist policies should be put into place to protect the US economy
It has forced the US economy to focus solely on manufacturing
It provides Americans with a variety of choices when wanting to buy something and provides a larger market for US-produced goods
It allows Americans to work anywhere in the world without restrictions

8:Which of the following is an example of a Command Economy?
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1 point
An economy where one person commands what everyone else does
An economy where each individual commands their own economic decisions
An economy where the Judicial Branch determines what economic laws are allowed
An economy where most to all aspects are controlled by the central government

9:What is the difference between a socialist country and a communist country?
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1 point
A socialist country is one in which there is a private market, but the government has a lot of regulatory power, a communist country is one where the government controls the entire economy.
A socialist country is one where the government controls the entire economy, a communist country is one where there is a private market, but the government has a lot of regulatory power.
A socialist country has an economy that is run by private citizens with no government oversight, while a communist country has the economy controlled by the government
A socialist country has an economy that is controlled by the government, while a communist country has an economy that is run by private citizens with no government oversight.

Answer 1

Economists have had an enormous impact on trade policy, and they provide a strong rationale for free trade and for removal of trade barriers. Although the objective of a trade agreement is to liberalize trade, the actual provisions are heavily shaped by domestic and international political realities. The world has changed enormously from the time when David Ricardo proposed the law of comparative advantage, and in recent decades economists have modified their theories to account for trade in factors of production, such as capital and labor, the growth of supply chains that today dominate much of world trade, and the success of neomercantilist countries in achieving rapid growth.