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If Adjustment Costs Associated with Removing Trade Restrictions Are High

Question 192

Multiple Choice

If adjustment costs associated with removing trade restrictions are high, trade barriers should


A) not be removed.
B) be increased while workers are being retrained for new jobs.
C) be slowly phased out to give workers time to retrain and find new jobs.
D) be immediately removed so workers are forced to retrain and find new jobs.
E) not be changed until all workers have left because of attrition.

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