A Major Reason Why It Is Difficult to Lower the Barriers

question 240

Multiple Choice

A major reason why it is difficult to lower the barriers to free trade is

• A) that total benefits are less than total costs from free trade.
• B) the uneven distribution of gains and losses from free trade.
• C) the loss of jobs without any gain of jobs from free trade.
• D) the inability to compensate losers from free trade.
• E) that the barriers allow us to compete with cheap foreign labor.

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Definitions:

Variable Input

Any production input that can be varied in the short term to increase or decrease output, such as labor or raw materials.

Output

The total amount of goods or services produced by a company or country.

Marginal Product Curve

A graphical representation showing how the additional output of a firm varies with the addition of one more unit of a variable input, holding all other inputs constant.

Total Product

The overall quantity of output that a firm produces, usually specified in relation to a given quantity of inputs.