Jim Whitney | Economics 131 |
Group members: ________________________
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Comparing results, decide whether each of the following
is consistently true or not. If so, briefly indicate why it is true. If
not, state in a single sentence a general rule for when the statement will
be false.
1. Free trade raises domestic consumption of items
that would otherwise be produced by domestic monopolies.
2. Free trade raises domestic production of items
that would otherwise be produced by domestic monopolies.
3. Free trade results in imports of items that are
produced under monopoly conditions without trade.
4. The overall gains from trade are larger when
an item would otherwise be produced under monopoly conditions rather than
perfect competition.