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.

---

Definitions:

Influenza

A highly contagious viral infection of the respiratory passages causing fever, severe aching, and often occurring in epidemics.

Rh Incompatibility

A condition where the Rh factors of a pregnant woman's blood and her baby's blood are incompatible, potentially leading to health issues for the baby.

Antibodies

Proteins produced by the immune system that recognize and neutralize foreign substances such as bacteria and viruses.

Fetus

A developing human from roughly the eighth week after conception until the moment of birth.