If trade causes shifts in production so that some workers
Are laid off, most economists conclude:
A)that the nation should extend unemployment benefits for a longer period.
B)that the situation is usually temporary because there are jobs created in export industries.
C)that we should expect wages to fall and therefore should not allow imports to take U.S.jobs.
D)that all workers will be better off because overall the equilibrium wage will rise.

Question

Quizplus · Accepted Answer

Most economists conclude that the situation is usually temporary because trade causes shifts in production that create new jobs in export industries. While some workers may be temporarily laid off, the overall effect of trade is to increase efficiency and expand economic opportunities, ultimately benefiting everyone. Therefore, it is not necessary to extend unemployment benefits or prevent imports to protect U.S. jobs.

If Trade Causes Shifts in Production So That Some Workers