Does free trade improve the living standards of all residents of a country?
A) Yes,definitely,because the gains from trade outweigh the losses in the import-competing industries.
B) Yes,because inefficient import-competing industries are replaced with efficient export industries.
C) Probably not - in principle,the net gains from trade could be divided such that every individual is better off,but in practice,some individuals are likely to be worse off.
D) No,because the benefits from free trade are only theoretical.
E) No,because the losses in the import-competing industries outweigh the gains from trade in the new export industries.
Correct Answer:
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