When Economists Talk About the Gains from Trade They Mean

question 54

Multiple Choice

When economists talk about the gains from trade they mean that

• A)no one ever gets hurt by trade.
• B)the benefits of trade outweigh the losses.
• C)business firms benefit from trade but not necessarily individuals.
• D)trade increases government revenue through taxes on imports.
• E)economic restructuring is usually quick and painless.

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Definitions:

Moral Competence

The ability to make choices and judgments that are ethical and in accordance with one’s values and societal norms.

Moral Performance

How an individual actually behaves when faced with moral dilemmas, as opposed to their knowledge of moral principles.

Distinction

A difference or contrast between similar things or people, often highlighting a unique feature or quality.

Social-cognitive Theorist

A scholar who focuses on how people learn by observing others, and how they control their behavior through cognitive processes.