Author Question: Which of the following statements about the redistribution of income due to free trade is true? ... (Read 18 times)

mmm · **on:** Sep 10, 2018

Which of the following statements about the redistribution of income due to free trade is true?

a. Any loss of income is transitory.
b. Trade has huge benefits but only modest distributional impacts.
c. Some groups will necessarily suffer long-term losses in income from free trade.
d. While some people are hurt in the short term, everyone will benefit in the long run.
e. Because free trade creates complications, it is best to enforce trade restrictions.

Question 2

Which statement best summarizes Rodrik's position on free trade?

a. Conventional economics does not apply to free trade.
b. Free trade will make most people better off in the long run.
c. Free trade is too complicated and not worth the risks or drawbacks.
d. Free trade depends on the context and has both limitations and advantages.
e. Even if some people lose income in a free trade economy, they can be compensated.