Critically evaluate the following statement. I am definitely in ...

[Mollykgkg]

Critically evaluate the following statement. I am definitely in favor of free trade but only if it means fair trade.
 
  What will be an ideal response?

Question 2

Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. At a quantity of 12,000 pounds
 
  A) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently high.
  B) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high.
  C) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low.
  D) producers should lower the price to 3 in order to sell the quantity demanded of 12,000.

[kaykay69]

Answer to Question 1

Much of the time arguments like this are really disguised arguments against free trade. The only way for free trade to work is if it makes both parties better off. Otherwise, there would be no point in trading. Making both parties better off than they were before seems fair. However, it might not benefit both parties by the same amount which is most often the case in trades of any kind. So if the definition of fairness in free trade is narrowed to only include trades that provide the same net benefit to all parties than it is likely this will mean that trade won't happen at all.

Answer to Question 2

A