
Critics of free trade sometimes argue that allowing imports from foreign countries costs jobs domestically.What would an economist argue
A) Foreign competition may cause unemployment in import-competing industries, but the effect is temporary because other industries, especially exporting industries, will be expanding.
B) Foreign competition may cause unemployment in import-competing industries, but the increase in consumer surplus due to free trade is more valuable than the lost jobs.
C) Foreign competition may cause unemployment in import-competing industries, but the increase in producer surplus due to free trade is more valuable than the lost jobs.
D) Foreign competition may cause unemployment in import-competing industries, but the increase in the variety of goods consumers can choose from is more valuable than the lost jobs.
Correct Answer:
Verified
Q118: Canada has imposed taxes on some imported
Q119: Figure 9-12 Q120: Figure 9-11 Q121: Which of the following best describes the Q122: What is a quota Q124: Which of the following are countries that Q125: Which of the following is NOT an Q126: Opponents of free trade often want Canada Q127: Where will workers displaced by trade eventually Q128: Which of the following is NOT an
![]()
![]()
A)a tax placed on
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents