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Your roommate Hansen argues that American producers cannot compete with foreign producers because wa

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Your roommate Hansen argues that American producers cannot compete with foreign producers because wa

Your roommate Hansen argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States. Hansen
A) is incorrect. Free trade raises living standards by increasing economic efficiency.
B) is right in asserting the need to protect high wages if the United States wishes to maintain its high standard of living.
C) is correct in arguing that the high wages of U.S. workers make it impossible to compete with workers in low-wage countries.
D) is advancing the anti-dumping argument for protectionism.

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Essentials of Economics

Edition: 4^th

Authors: Hubbard, O'Brien

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