Which statement about free trade is MOST accurate? A. Free trade frequently leads to high rates of unemployment because it encourages inefficiency. B. Free trade discourages economic specialization because consumers can purchase goods from multiple markets. C. Free trade causes the price of goods to increase by creating more competitive labor markets. D. Free trade allows industries to use their resources for production and import what they cannot produce efficiently.

Brief Principles of Macroeconomics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter2: Thinking Like An Economist
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Which statement about free trade is MOST
accurate?
A. Free trade frequently leads to high rates of
unemployment because it encourages
inefficiency.
B. Free trade discourages economic
specialization because consumers can
purchase goods from multiple markets.
C. Free trade causes the price of goods to
increase by creating more competitive labor
markets.
D. Free trade allows industries to use their
resources for production and import what
they cannot produce efficiently.
Transcribed Image Text:Which statement about free trade is MOST accurate? A. Free trade frequently leads to high rates of unemployment because it encourages inefficiency. B. Free trade discourages economic specialization because consumers can purchase goods from multiple markets. C. Free trade causes the price of goods to increase by creating more competitive labor markets. D. Free trade allows industries to use their resources for production and import what they cannot produce efficiently.
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