The overall welfare effects of trade are ________ if ________.
A) positive; those who gain can compensate those who lose and still be better off
B) positive; more people gain from trade than lose from it
C) negative; some people are made worse off by trade
D) negative; those who lose can compel those who gain to compensate them for their losses
E) positive; the domestic economy grows faster than do foreign economies

Question

Quizplus · Accepted Answer

The overall welfare effects of trade are considered positive if the gains from trade are large enough that those who benefit could potentially compensate those who lose and still retain some benefit, which is a concept known as the Pareto improvement.

The Overall Welfare Effects of Trade Are ________ If ________

The Overall Welfare Effects of Trade Are If