If opening an economy up to trade always benefits both trading partners, why is free trade controversial?
What will be an ideal response?
Free trade is controversial because it affects various groups in the economy in different ways. While both trading partners on the whole will gain from free trade, some individuals may lose. For example, opening up the economy to trade may allow consumers to buy goods at lower prices but could affect the wages and jobs of domestic workers.
Economics
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What will be an ideal response?
Economics
Some companies subject their applicants to extensive tests. Why?
A) to reduce the informational asymmetry between the firm and the applicant B) to screen the applicant to avoid the problem of adverse selection C) to gather more information about the applicant D) All of the above.
Economics