There is a strong consensus among economists in favor of free trade. Governments appreciate the reasons for free trade as well but they may sometimes restrict trade because
a. their absolute advantage is greater than their comparative advantage
b. their comparative advantage is greater than their absolute advantage
c. the trade generates negative gains
d. they may want to protect infant industries
e. they prefer dumping to trade
D
You might also like to view...
If the demand curve for bottled water shifts leftward and the supply curve of bottled water shifts leftward, the equilibrium
A) price of bottled water definitely increases. B) price of bottled water definitely decreases. C) quantity of bottled water definitely increases. D) quantity of bottled water definitely decreases.
Adam Smith stated, "The man of system is apt to be very wise in his own conceit. He seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chess-board.". Which is true of this statement?
a. Keynes would tend to agree with the statement; Heyek would disagree with it. b. Keynes would tend to disagree with the statement; Hayek would agree with it. c. As the rap video indicates, both Keynes and Hayek strongly agree with this statement. d. As the rap video indicates, both Keynes and Hayek strongly disagree with this statement.