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:

Expectancy Violation Theory

Theory that you interpret the messages of

Emotional Contagion Theory

Theory that emotional expression is contagious; people can “catch” emotions just by observing others’ emotional expressions.

Interaction Adaptation Theory

Theory suggesting that people interact with others by adapting to their communication behaviors.

Interactional Synchrony

Mirroring of each other’s nonverbal behavior by communication partners.