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In general, the gains to some resources from free trade exceed losses suffered by other resources. This means that, in principle: a the government should
In general, the gains to some resources from free trade exceed losses suffered by other resources. This means that, in principle: a the government should tax imports in order to reduce the losses suffered by some resources. b the government should be able to tax resources that gain and compensate resources that lose, so all resources are better off with trade. c the government ought to tax returns on land because these always increase with free trade. d the government reduce the free trade to increase the overall welfare of the country.
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