Which of the following is the most accurate statement about trade policy?
A)Trade policy has neither microeconomic nor macroeconomic effects.
B)Trade policy has similar microeconomic and macroeconomic effects.
C)The effects of trade policy are more macroeconomic than microeconomic.
D)The effects of trade policy are more microeconomic than macroeconomic.

Question

Quizplus · Accepted Answer

Trade policy has both microeconomic and macroeconomic effects, but the microeconomic effects are more pronounced. Trade policy can affect the prices of goods and services, the competitiveness of businesses, and the allocation of resources within specific industries, all of which are microeconomic considerations. These microeconomic effects can then have a ripple effect on the broader economy, affecting employment levels, wages, and economic growth, which are macroeconomic considerations. However, the direct microeconomic effects of trade policy tend to be more significant than the indirect macroeconomic effects. Therefore, option D is the most accurate statement.

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