Question
Which of the following statements is not considered a false statement in economics? As the trade theory suggests, a tariff on imported products is an
Which of the following statements is not considered a "false" statement in economics?
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.
For any economy, "regulated trade" (trade with barriers) is always preferred to both "free trade" (trade with no barriers) and "no 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.
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