Asked by
Michelle Romero
on Dec 12, 2024
Verified
If the United States unilaterally removed all of its trade restrictions and moved toward a policy of free trade, international trade theory indicates that
A) U.S. residents would gain, but people in other countries would be worse off.
B) people in other countries would gain, but U.S. residents would be worse off.
C) both U.S. residents and people in other countries would be able to achieve higher income levels.
D) the average income level would be lower in both the United States and other countries.
Trade Restrictions
Government-imposed limitations on the free exchange of goods and services between countries.
Unilaterally
Acting or done by one side alone without agreement or consultation with others.
Free Trade
An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.
- Acknowledge the merits of free trade and the downsides of trade limitations.
- Analyze how international trade affects domestic economies, including producers and consumers.
Verified Answer
PH
Learning Objectives
- Acknowledge the merits of free trade and the downsides of trade limitations.
- Analyze how international trade affects domestic economies, including producers and consumers.