Suppose the United States produces only two goods, grapes and tractors. If the United States has a comparative advantage in tractors, a move toward free trade will:
A) benefit tractor workers, harm grape workers, but harm the nation as a whole.
B) harm tractor workers, benefit grape workers, but benefit the nation as a whole.
C) benefit tractor workers, harm grape workers, but benefit the nation as a whole.
D) harm tractor workers, harm grape workers, but benefit the nation as a whole.
Correct Answer:
Verified
Q18: Recall Application 4, "Trade, Consumption and Inequality,"
Q19: A voluntary export restraint is a trade
Q20: Q21: Recall Application 3, "Are They Really Dumping?" Q22: Suppose France produces only two goods, airplanes Q24: Recall Application 4, "Trade, Consumption and Inequality," Q25: The increase in the U.S trade deficit Q26: If France can produce grapes at a Q28: Autarky refers to: Q48: ![]()
A) the equilibrium a nation![]()
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