In the short-run, following the opening of trade:
A)workers in the country can change jobs but will receive the same wage.
B)workers will suffer from lower wages but land owners will benefit from higher rents.
C)all groups tied to declining sectors of the economy will suffer from lower returns.
D)gross output remains constant.

Question

Quizplus · Accepted Answer

In the short-run, following the opening of trade, all groups tied to declining sectors of the economy will suffer from lower returns. This includes workers in declining industries, as well as owners of capital and land tied to those sectors. However, in the long-run, trade can bring overall benefits to the economy as a whole.

In the Short-Run, Following the Opening of Trade