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.

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Definitions:

Meat Powder

Ground or finely divided meat used in various contexts, including as a food ingredient or in laboratory settings as a stimulus in the study of animal behavior.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Tone

can refer to the quality or character of sound, or in linguistics, the use of pitch in language to distinguish lexical or grammatical meaning.

Salivation

The secretion of saliva in the mouth, which is stimulated by the presence or anticipation of food and aids in digestion.