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Suppose Belgium Produces Only Two Goods, Chocolate and Lace

Question 52

Multiple Choice

Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage in lace, a move toward free trade will


A) benefit chocolate workers, harm lace workers in the short run, but benefit the nation as a whole.
B) harm chocolate workers in the short run, benefit lace workers, but benefit the nation as a whole.
C) harm chocolate workers in the short run, harm lace workers, but benefit the nation as a whole.
D) benefit chocolate workers, harm lace workers in the short run, but harm the nation as a whole.

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