Why Do Critics of Free Trade Claim That These Policies

question 31

Multiple Choice

Why do critics of free trade claim that these policies are not the solution to poverty and global inequality?

• A) They argue that it leads to unnecessary investment in "human capital" instead of investment in technology.
• B) They argue that weak enforcement of intellectual property rights allows wealthier countries and the corporations within them to steal from poorer countries.
• C) They argue that wealthy countries like the United States are unfairly targeted by free trade policies.
• D) They argue that free trade largely benefits wealthy countries and exacerbates poverty in the global south.

Critically assess the impacts of public policy on economic efficiency and incentives.

Understand the factors contributing to income inequality.

Knowledge of how taxes and government transfers influence income distribution.

Analyze how income distribution impacts individuals' incentives in a market economy.

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Definitions:

Isostasy

The condition of equilibrium, comparable to floating, of the crust resting on the solid mantle.

Equilibrium

A state of balance between opposing forces or actions.

Asthenosphere

The area of mantle beneath the lithosphere that is solid, but hotter than the rock above it and can flow under pressure; functions as a soft, weak zone over which the lithosphere may move.

Crustal Blocks

These are large areas of the Earth's crust that have moved together or apart due to tectonic activity.