Congressman Smith Cites the "Jobs Argument" When He Argues in Favor

question 23

Multiple Choice

Congressman Smith cites the "jobs argument" when he argues in favor of restrictions on trade;he argues that everything can be produced at lower cost in other countries.The likely flaw in Congressman Smith's reasoning is that he ignores the fact that

• A)there is no evidence that any worker ever lost his or her job because of free trade.
• B)unemployment of labor is not a serious problem relative to other economic problems.
• C)the gains from trade are based on comparative advantage.
• D)the gains from trade are based on absolute advantage.

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