To correctly analyze the welfare effects of free trade on an economy,what must economists assume
A)that the country has a comparative advantage in the product
B)that the country is the only producer of the product
C)that the country is a price taker
D)that the country has an absolute advantage in the product

Question

Quizplus · Accepted Answer

Economists must assume that the country is a price taker, meaning it cannot influence world prices and must accept them as given, to analyze the welfare effects of free trade accurately.

To Correctly Analyze the Welfare Effects of Free Trade on an Economy,what