Which of the following is the most accurate statement?
A)Trade policy has neither microeconomic nor macroeconomic effects.
B)Trade policy has similar microeconomic and macroeconomic effects.
C)The effects of trade policy are more macroeconomic than microeconomic.
D)The effects of trade policy are more microeconomic than macroeconomic.

Question

Quizplus · Accepted Answer

Trade policy has a significant impact on microeconomic factors such as prices, wages, and employment, as well as the competitiveness of firms. The impact on macroeconomic factors such as GDP, balance of payments, and national income is relatively smaller. Therefore, the most accurate statement is that the effects of trade policy are more microeconomic than macroeconomic.

Which of the Following Is the Most Accurate Statement