Which of the following arguments is valid in the economics of international trade?
A) Trade restrictions are good ways to raise a country's employment.
B) Protectionism increases the well-being of domestic consumers.
C) Trade restrictions help to reduce child labor in poor countries.
D) Trade can result in a net job gain in the whole country.

Question

Quizplus · Accepted Answer

Trade can result in a net job gain in the whole country through the creation of new industries and increased demand for exports, which can lead to increased production and employment opportunities. The other options have been debunked by economic theories and empirical evidence. Trade restrictions result in job losses, protectionism can raise prices and reduce consumer welfare, and reducing trade can result in a reduction in income, which can result in more child labor as households try to supplement their income.

Which of the Following Arguments Is Valid in the Economics