Assume a country agrees to a free-trade act with another country. In the process, some individuals are displaced from their jobs, thus the free-trade act results in a negative externality

A) False.
B) True.
C) Only if those who were displaced are not compensated with another job or income transfer.
D) Only if those who were displaced were compensated with another job or income transfer.

C

Economics

You might also like to view...

The total amount of producer surplus in a market is equal to the area below the supply curve

Indicate whether the statement is true or false

Economics

If average fixed cost and average variable cost are summed together, the result is: a. total revenue

b. total profit. c. total cost. d. average total cost.

Economics