Critics of Free Trade Sometimes Argue That Allowing Imports from Foreign

question 8

Multiple Choice

Critics of free trade sometimes argue that allowing imports from foreign countries causes a reduction in the number of domestic jobs.An economist would argue that

• A)foreign competition may cause unemployment in import-competing industries,but the effect is temporary because other industries,especially exporting industries,will be expanding.
• B)foreign competition may cause unemployment in import-competing industries,but the increase in consumer surplus due to free trade is more valuable than the lost jobs.
• C)the critics are correct,so countries must protect their industries with tariffs or quotas.
• D)foreign competition may cause unemployment in import-competing industries,but the increase in the variety of goods consumers can choose from is more valuable than the lost jobs.

Recognize the importance of logical strength and the tests for the acceptability of an argument in ideological reasoning.

Explore the role of belief systems and convictions in shaping one's acceptance of ideological arguments.

Distinguish between deductive and inductive reasoning within the context of ideological arguments.

Acknowledge the social implications of ideological belief structures and how disagreement is perceived.

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Definitions:

Selling For

The process or act of offering goods or services in exchange for money.

Annually

Referring to events or measurements that occur once every year.

Indexed Bonds

The interest rate of such a bond is based on an inflation index such as the consumer price index (CPI), so the interest paid rises automatically when the inflation rate rises, thus protecting the bondholders against inflation.

United States

A country located in North America with a federal republic government, known for being one of the world's largest economies.