If Adjustment Costs Associated with Removing Trade Restrictions Are High

Multiple Choice

If adjustment costs associated with removing trade restrictions are high, then

A) consumers will end up worse off because government payments to workers who lost their jobs will increase.
B) the benefits of free trade can be used to compensate workers who lost their jobs.
C) the benefits of free trade will be negative.
D) there are no benefits of free trade.
E) None of these