Multiple Choice
A group opposed to free trade concludes that if free trade is adopted, the total number of domestic jobs will decrease because the group estimates that 20,000 jobs will migrate abroad. The actual total loss is
A) greater than 20,000 because of the tariff effect.
B) greater than 20,000 because of the multiplier effect.
C) equal to 20,000 because of the import effect.
D) less than 20,000 because the estimate ignores the jobs created in the industries that benefit from increased exports.
Correct Answer:
Verified
Correct Answer:
Verified
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