Economists consider the effects of free trade on income distribution to be ________ important than the effects on overall welfare because ________.
A) less; many factors besides trade affect income distribution
B) more; those who are harmed are not compensated by those who gain
C) less; the effects on income distribution are minor and inconsequential
D) more; the effects on income distribution are major and consequential
E) less; the wealthy benefit and only the poor lose

Question

Quizplus · Accepted Answer

Economists recognize that income distribution is influenced by numerous factors beyond just trade, such as technology, education, and taxation. Therefore, the impact of free trade on income distribution is considered to be relatively less important compared to its effects on overall welfare.

Economists Consider the Effects of Free Trade on Income Distribution