The key to resolving the apparent paradox of international trade increasing total output yet facing much political opposition is noting that:
A) economists are mistaken about the increase in output.
B) only the wealthy benefit from trade.
C) no one benefits from trade.
D) everyone does not benefit equally from trade.

Question

Quizplus · Accepted Answer

Trade does lead to an overall increase in total output, but it does not always benefit everyone in an equal manner. Some groups may experience job losses or wage stagnation due to increased competition from foreign markets, which can lead to political opposition and calls for protectionism. However, other groups such as consumers and producers who have access to cheaper goods or new markets can benefit greatly from trade. Therefore, the key lies in understanding that although trade increases total output, it does not necessarily benefit everyone equally.

The Key to Resolving the Apparent Paradox of International Trade