1.) We are constantly hearing about the mass exodus of jobs to other countries (phone service, computer service, sales). Use the concept of comparative advantage to explain why this is occurring. Also, explain how the U.S. benefits more in the long run from this shift. What sectors are harmed by the shift? What sectors benefit? Are there jobs likely to be created in the U.S. from this? Where? Why? Do you feel we should become protectionist and prevent this loss of jobs? Defend your answer.

2.) which of the is an example of an automatics fiscal stabilizer

A.) The federal reserve arranges to make lonas to a banks automatically whenever an economic down-turn begins

B.) As the economy heats up, the resulting increase in equilibrium income immediately results in higher income tax payments, which dampens consumption spending somewhat.

C.) As the economy start to recover from a recession and more people go back to work, government funded unemployment compensation payments begin to decline.

D.) To stem an overheated economy, the president using special powers granted by congress, authorizes emergency impoundment of funds that congress had previously authorized for spending on government programs