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7. Which of the following asserts that import-competing firms that are struggling to stay in business should be provided protection to maintain jobs and continue domestic production? The developing government argument b. The infant industry argument c. The dying industry argument d. The optimal tariff argument 8. In a "first-best" world: a. cach economy is self-sufficient enough not to indulge in free trade. b. free trade is economically efficient, c. free trade benefits only the consumers of the importing country. d. free trade benefits only the exporting nations 9. Which of the following is said to occur when a firm lowers its price to limit the decline in the quantity sold during a period of recession? a. Persistent dumping b. Cyclical dumping c. Predatory dumping Seasonal dumping hich of the following statements about dumping is Fue? Consumers and import-competing producers in the importing country are both hurt by dumping. Logically, an import country should never allow seasonal and introductory-price dumping. Dumping helps to improve the importing country's terms of trade, Predatory dumping occurs quite frequently in modern markets. 1 1. Which of the following was an observable effect of NAFTA? a. NAFTA led to a substantial decrease in the infame of trade among the three member countries, b Low cost firms in Canadian manufacturing dustries were replaced by the high-cost firms, imports of clothing and textiles into the member countries were diverted away from low-cost suppliers in Asia. d. There was massive shift of jobs toward Mexico