What do economists mean when they say that US downstream sectors suffered substantially from US-China trade war? Select one – the most appropriate answer.

Question

BlackTom AI · Accepted Answer

Question restatement: What do economists mean when they say that US downstream sectors suffered substantially from the US-China trade war? Select one – the most appropriate answer.

Option 1: 'Along with protected sectors there are export-oriented sectors that were hit by countermeasures from foreign economies, especially those having downstream wages.' This statement presumes that export-oriented sectors with downstream wages were the main victims of countermeasures, but it focuses on export-oriented activity and wages rather than the mechanism by which downstream sectors suffer via upstream price transmission. In many analyses, downstream impact is driven by upstream price changes and input costs, not primarily by export-oriented demand shifts.

Option 2: 'Mostly upstream sectors were protected, so downstream industries appeared to be in much more sever conditions because of the increase in wage that essentially increased their cost.' Here the reasoning hinges on wages and the notion that upstream protection drives downstream pain through wage increases. While input costs can rise, the core channel is typically through higher prices for intermediate goods raised by protection, not primarily through wage-driven costs in downstream sectors. This makes the mechanism described here less central or precise.

Option 3: 'Along with protected sectors there are sectors that use the goods produced by protected manufacturers as intermediates and since their price rose, they lost their output and thus jobs.' This captures the standard transmission mechanism: protection of certain sectors raises the price of inputs (intermediates) used by other sectors. When downstream or intermediary-using sectors confront higher input costs, their output and employment can contract. It aligns with the common explanation of how protection in one part of the chain can ripple to downstream users of protected goods.

Option 4: 'Unlike downstream sectors upstream industries were mostly oriented on imported intermediates whose price dropped and that gave them additional competitive advantages.' This option posits falling input prices from imported intermediates, which would reduce costs for upstream activities. However, the statement contradicts the idea that downstream sectors were substantially hurt; it also misstates the typical trade-war dynamics where tariff-induced price increases on inputs often harm downstream users, not reduce their costs.

Option 5: 'No correct answer.' Given the plausible mechanism described in Option 3—ripple effects through higher input costs for sectors that rely on protected intermediates—the claim of a correct answer is supported by standard economic reasoning about input-output linkages during protectionist episodes. Therefore, this option is not accurate.

In summary, the most coherent explanation that aligns with how protection in one part of the economy can elevate prices for intermediate goods and thereby suppress output and employment in downstream users is described in Option 3. The other options misstate the primary transmission channels or rely on less central factors like wage effects or the behavior of upstream versus downstream groups that do not match typical trade-war impact channels. The overall interpretation emphasizes input-cost pass-through and demand-supply chain linkages as the mechanism for downstream harm.

econ_420_120255_249094 Lesson 7 Quiz

What do economists mean when they say that US downstream sectors suffered substantially from US-China trade war? Select one – the most appropriate answer.

查看解析

登录即可查看完整答案

类似问题

How would you asses the main outcomes of the US-China trade war in 2018-2019 for the US economy? Select one – the most appropriate answer.

How would you asses the main outcomes of the US-China trade war in 2018-2019 for the US economy? Select one – the most appropriate answer.

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单