According to Rodrik, why do economists fail to recognize and address the problems with free trade theories?
a. because of their focus on economic stability and growth
b. because they have focused on political and social modernization instead of economic reform
c. because of their focus on institutions rather than on the economic effects of those institutions
d. because they disagree in all areas of domestic policy, including health, education, and taxation
e. because of their ideological stance and the fact that their views tend to be aligned with free market enthusiasts rather than interventionists
Question 2
Why might governments elected democratically by proportional representation (PR) be more supportive of trade openness?
a. PR is the fairest of all electoral systems.
b. PR reduces the influence of local and regional interests over government policy.
c. PR produces weak political parties that are susceptible to pressures for trade openness.
d. PR tends to produce weak governments that are too weak to impose trade restrictions.
e. PR allows all parties to be represented in government, and it is in most parties' interests to have trade openness.
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