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Critics of Free Trade Sometimes Argue That Allowing Imports from Foreign

Question 123

Multiple Choice
Critics of free trade sometimes argue that allowing imports from foreign countries costs jobs domestically.What would an economist argue

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.

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