Representative Vazquez cites the "jobs argument" when he argues before Congress in favor of restrictions on trade; he argues that everything can be produced at lower cost in other countries. The likely flaw in Representative Vazquez's reasoning is that he ignores the fact that
A)there is no evidence that any worker ever lost their job because of free trade.
B)unemployment of labor is not a serious problem relative to other economic problems.
C)the gains from trade are based on comparative advantage.
D)the gains from trade are based on absolute advantage.

Question

Quizplus · Accepted Answer

The flaw in Representative Vazquez's reasoning is that he ignores the concept of comparative advantage, which suggests that countries benefit from trade even if they are not the most efficient at producing everything, as long as they specialize in producing goods for which they have a lower opportunity cost relative to other countries.

Representative Vazquez Cites the "Jobs Argument" When He Argues Before