Read each question carefully and thoroughly before selecting the best answer. Choose only one answer per question. If you find something unclear, ask about it before turning in your exam. Finally, mark your answers in the appropriate columns of the computer card. U.S. workers will be able to compete effectively if their productivity advantage offsets their wage disadvantage.
Protectionism raises a country's average standard of living.
Even though protectionism reduces the average standard of living, the number of parties benefitting from protectionism exceeds the number of parties hurt by protectionism. Even though protectionism harms more parties than it benefits, those who stand to gain exert more political pressure. Even though protectionism reduces a country's average standard of living, most politicians are unaware that protectionism has adverse effects. U.S. workers who assemble Ford and General Motors vehicles become worse off. U.S. consumers, taken as a group, become worse off.