Which of the Following Statements Best Indicates Samuelson's Criticism of Free

question 65

Multiple Choice

Which of the following statements best indicates Samuelson's criticism of free trade?

• A)Dynamic gains lead to a universally beneficial outcome for all countries.
• B)Offshoring service jobs that were traditionally mobile will increase the market clearing wage rate.
• C)Free trade has historically been beneficial only to developing countries.
• D)By importing cheap goods from a poor country a rich country may not be able to produce a net gain if the dynamic effect of free trade is to lower real wage rates in the rich country.
• E)Trade changes a country's stock of resources and the efficiency with which it utilizes those resources.

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Definitions:

Social Influence

Process whereby attitudes and behaviour are influenced by the real or implied presence of other people.

Leadership

Getting group members to achieve the group’s goals.

Power

Capacity to influence others while resisting their attempts to influence.

Informational Power

Influence derived from possessing knowledge or information that others perceive as valuable or essential.