Critics of Free Trade Sometimes Argue That Allowing Imports from Foreign

question 60

Multiple Choice

Critics of free trade sometimes argue that allowing imports from foreign countries costs jobs domestically.What would an economist argue

• 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)Foreign competition may cause unemployment in import-competing industries, but the increase in producer surplus due to free trade is more valuable than the lost jobs.
• 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.

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Definitions:

Critical Problems

significant, urgent issues or challenges that require immediate attention and resolution to prevent adverse outcomes.

Certainty

The state of being completely confident or having an absolute conviction about something, without doubt.

Risk and Uncertainty

Refers to situations where the outcomes or consequences of actions are unknown, with risk implying some knowledge of probability and uncertainty indicating a complete lack of predictability.

Personal Judgments

Opinions or decisions formed by individuals based on personal feelings, tastes, or opinions, often without external input or influence.