It is _______ that protection makes a nation worse off because it induces the firms in that nation to produce more of the goods that are costly to make and;it is _____ that one nation can gain from international trade only at the expense of other nations.

Question

Quizplus · Accepted Answer

The first statement is true because protectionism can lead to inefficient allocation of resources, where firms focus on producing goods that are costly to make. The second statement is false because international trade can actually benefit all countries involved through specialization and efficient allocation of resources, leading to mutual gains.

It Is _______ That Protection Makes a Nation Worse Off