In 2016, Hillary Clinton stated the following: "My message to every worker in Michigan and across America is this. I will stop any trade deal that kills jobs or holds down wages, including the Trans-Pacific Partnership [Trade Agreement]." Which of the following is a reason that Clinton's statement is not grounded in economic theory?
A) Trade deals do not have an impact on wages.
B) Trade deals that reduce barriers to trade will reduce wages in all sectors of the economy.
C) Trade deals that reduce barriers to trade may not change the composition of jobs (that is, "kill" any specific job) within a country.
D) Any trade deal that changes the terms of trade between countries will change the composition of jobs within a country.
Correct Answer:
Verified
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