Smith Argues That American Producers Cannot Compete with Foreign Producers

question 120

Multiple Choice

Smith argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States.Smith is

• A) advancing the foreign export subsidies argument for protectionism.
• B) making the mistake of believing that high wages mean high costs.
• C) advancing the antidumping argument for protectionism.
• D) making the mistake of believing that productivity is higher in foreign countries than in the United States.
• E) none of the above

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