In the past, presidential candidates have argued that free trade with Mexico would result in massive job losses in the United States because Mexican wages were so low. Which of the following is the best explanation of why few economists agree with this position?
A. Economists believed that the U.S. unemployment rate would rise.
B. Although economists agreed that in some areas the United States would lose jobs, they expected that the United States would gain jobs in other areas.
C. Although economists predicted that unemployment would rise, the increased profits of corporations would raise stock prices enough to compensate for the lost jobs.
D. Economists did not believe that any jobs would be lost in the United States.
Answer: B
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A) $400 per unit B) $100 per unit C) $25 per unit D) insufficient information to answer question
Trade between industrial countries account for the majority of international trade
a. True b. False Indicate whether the statement is true or false
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Whenever government spending is a substitute for private spending
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