If Trade Causes Shifts in Production So That Some Workers

question 37

Multiple Choice

If trade causes shifts in production so that some workers are laid off, most economists conclude:

• A) that the nation should extend unemployment benefits for a longer period.
• B) that the situation is usually temporary because there are jobs created in export industries.
• C) that we should expect wages to fall and therefore should not allow imports to take U.S. jobs.
• D) that all workers will be better off because overall the equilibrium wage will rise.

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