Consider the Following Statement: "With Unemployment at Its Highest Level

question 19

Multiple Choice

Consider the following statement: "With unemployment at its highest level in years, Canada needs to protect domestic jobs by promoting a "Buy Canadian" policy." This statement is _ because _ .

• A)incorrect; it will work against Canada's pattern of absolute advantage
• B)correct; it recognizes that such a policy can sustain high levels of domestic employment
• C)incorrect; it confuses the real and nominal gains from trade
• D)correct; a "Buy Canadian" policy will take advantage of Canada's comparative advantage
• E)incorrect; it fails to recognize that imports of foreign goods also help to encourage the export of domestic goods

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