Which of the following statements is true?
A)Free trade benefits a country when it exports but harms it when it imports.
B)"Voluntary" limits on Canadian exports of hogs are better for the United States than U.S.tariffs placed on Canadian hog exports.
C)Tariffs and quotas differ in that tariffs work like a tax and therefore impose deadweight losses,whereas quotas do not impose deadweight losses.
D)Free trade benefits a country both when it exports and when it imports.

Question

Quizplus · Accepted Answer

Free trade benefits a country both when it exports and when it imports. When a country engages in free trade, it allows for the importation of goods and services that it may not have the ability to produce domestically or where it may be more expensive to produce domestically. This allows consumers to purchase these goods and services at a lower price, which, in turn, raises their standard of living. Similarly, when a country is able to export, it can earn foreign exchange, which can be invested in the country, further promoting economic growth.

Which of the Following Statements Is True