Which statement(s) is TRUE?
I. When U.S. consumers buy lower-priced imports, they have more money to buy other goods, leading to increased jobs in other industries.
II. On net, free trade reduces total employment.
III. When foreign producers receive U.S. dollars for their exports, some of these dollars are used to buy U.S. goods and assets, increasing employment in U.S. exporting industries.
A) I only
B) II only
C) I and III only
D) III only

Question

Quizplus · Accepted Answer

Statement I is true and is a common argument in support of free trade. Statement II is false, as most economists agree that free trade leads to a net increase in total employment. Statement III is also true, as foreign producers using U.S. dollars to buy U.S. goods and assets can increase employment in U.S. exporting industries.

Which Statement(s) Is TRUE