Trade Theorists Have Proven That the Gains from International Trade

question 11

Multiple Choice

Trade theorists have proven that the gains from international trade

• A) must raise the economic welfare of every country engaged in trade.
• B) must raise the economic welfare of everyone in every country engaged in trade.
• C) must harm owners of "specific" factors of production.
• D) will always help "winners" by an amount exceeding the losses of "losers."
• E) usually outweigh the benefits of protectionist policies.

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Definitions:

Air Pollution

The presence of harmful or excessive quantities of substances in the air, potentially harmful to human health and the environment.

Ventilators

Medical devices used to assist or control breathing by delivering air or a mixture of gases to the lungs.

Nonrival Consumption

A characteristic of certain goods where one person's consumption does not limit or diminish another's ability to consume the same good.

Public Good

Free goods or services are available to all individuals in a society, offered by the government or private entities, excluding profit motives.