All Rights Reserved for Dr. Ibrahim Abou-Saad: Which of the following statements is not considered a "false" statement in economics? For any economy, "regulated trade" (trade with barriers) is always preferred to both "free trade" (trade with no barriers) and "no trade." As the trade theory suggests, a "tariff" on imported products is an example of a trade barrier that is always desired because it protects the domestic suppliers. Between any two countries trading two products, where each country has a comparative advantage in producing one of these two products, we know that the regulated trade is always better than the free trade. When a country produces on its production possibilities curve, then this country's unemployment is expected to be at one of its lowest rates; however, prices in this country are not expected to be relatively low