Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose you are explaining the benefits of free trade and someone states, I don't understand all the principles of comparative advantage and gains from trade.
Suppose you are explaining the benefits of free trade and someone states, "I don't understand all the principles of comparative advantage and gains from trade. I just know that if I buy something produced in Canada, I create a job for a Canadian, and if I buy something produced in Brazil, I create a job for a Brazilian." Are they correct in asserting that free trade costs Canada jobs? All of the following statements correctly describe the outcomes when Canada imports products in which it does not have a comparative advantage, except that A. Canada tends to organize its production efficiently by focusing on products where it has a comparative advantage. B. Canada helps to improve world income and employment as well. C. the number of jobs in Canada is reduced. D. although jobs are lost in some industries that compete with foreign imports, more jobs are created in the economy
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started