Congressman Smith cites the "jobs argument" when he argues in favor of restrictions on trade;he argues that everything can be produced at lower cost in other countries.The likely flaw in Congressman Smith's reasoning is that he ignores the fact that
A)there is no evidence that any worker ever lost his or her job because of free trade.
B)unemployment of labor is not a serious problem relative to other economic problems.
C)the gains from trade are based on comparative advantage.
D)the gains from trade are based on absolute advantage.

Question

Quizplus · Accepted Answer

Congressman Smith's argument ignores the concept of comparative advantage, which suggests that countries can benefit from specializing in producing goods or services in which they have a lower opportunity cost than other countries. This leads to gains from trade, including job creation in industries where a country has a comparative advantage. By focusing only on the fact that other countries may have a lower cost of production, Congressman Smith overlooks the potential benefits of trade and the possibility that restricting trade could harm job creation in certain industries.

Congressman Smith Cites the "Jobs Argument" When He Argues in Favor