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.
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