Question

The government of a country faced substantial pressure from different sectors to reduce tariffs. Many​ groups, including the​ media, were lobbying for an overall reduction in import tariffs imposed by the government. According to​ them, the country would gain if free trade were encouraged. While certain sectors reported increased exports after a reduction in trade​ restrictions, many firms went out of business in other sectors as imports increased. People who lost their jobs complained that the reduction in tariffs had done the nation more harm than good. Which of the​ following, if​ true, would weaken the claim of the people who lost their​ jobs? A. The contribution of imports to this​ country's GDP has always been much higher than its exports. B. The World Trade Organization is encouraging free trade between nations. C. The increase in GDP after the reduction in trade barriers was very low. D. The global economy is recovering from a recession. E. The demand for the​ country's goods is higher outside the country than inside the country.

Answer 1

Answer: A. The contribution of imports to this​ country's GDP has always been much higher than its exports

Step-by-step explanation:

If it is true that the contribution of imports to GDP has always been higher than the exports then claims that more harm was done to the economy by increasing imports would seriously be weakened. Since more imports are coming in, there should be a higher GDP all else equal and a higher Gross Domestic product is typically equated to a good economy. For example, if importing Samsung screens from South Korea has made the US GDP high, if trade restrictions are relaxed and even more screens are imported, it stands to reason that the GDP will go even higher, all else being equal that is.