Free traders maintain that an open economy is advantageous is that it provides all of the following except ?
Correct answer: D. Relatively high wages levels for all domestic workers
- A. Increased competition for world producers
- B. A wider selection of products for consumers
- C. The utilization of the most efficient production methods
- D. Relatively high wages levels for all domestic workers
Explanation
Free trade can increase competition, product variety and productive efficiency, but it does not guarantee relatively high wages for every domestic worker. Workers in import-competing industries may face lower wages or unemployment.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
International trade tends to cause welfare losses to at least some groups in a country ?
A feasible effect of international trade is that a (an) ?
International trade in goods and services tends to ?
Arguments for free trade are sometimes disregarded by politicians because ?
The movement to free international trade is most likely to generate short-term unemployment in which industries ?
If a nation has an open economy it means that the nation ?