What is an effective counter against the argument that international trade should be restricted to protect domestic jobs?
A) A more effective policy would be to support the industry with subsidies.
B) The more diversified the economy, the more stable it is.
C) Free trade increases the number of jobs in which workers earn higher incomes.
D) Rent seeking behavior should be encouraged.
E) Free trade in green goods will increase jobs.
Question 2
The figure above shows the market for annual influenza immunizations the United States. If the government does not intervene in this market, deadweight loss equals ________.
A) 350 million
B) 250 million
C) 500 million
D) 600 million
E) 37.5 million
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Flexible exchange rates are supposed to prevent long-term trade deficits.