Question

Every​ year, the Gallup poll asks a sample of people in the United States whether they believe foreign trade provides​ "an opportunity for economic growth through increased U.S.​ exports," or whether they believe foreign trade represents​ "a threat to the economy from foreign​ imports." The table shows the responses for two years.

	View of foreign trade
Year	Favorable to foreign trade	Unfavorable to foreign trade	State of the U.S. economy
2008	​41%	​52%	Deep economic recession
2017	​72%	​23%	Economic expansion

​Source: Art​ Swift, "In​ US, Record-High​ 72% See Foreign Trade as​ Opportunity," gallup.com, February​ 16, 2017.

Which of the following statements is most​ true?

A.

When trade​ occurs, countries are worse​ off, but most individuals are better off.

B.

When trade​ occurs, countries are better​ off, but some individuals may be worse off.

C.

When trade​ occurs, countries are worse​ off, and most individuals are worse off.

D.

When trade​ occurs, countries are better​ off, and all individuals are better off.

The general​ public's opinion of foreign trade might be substantially different during an economic recession as opposed to during an economic expansion because during an economic​ recession,

A.

unemployment is higher and politicans will be less likely to demagogue on this issue.

B.

unemployment is lower and politicians are more likely to demagogue on this issue.

C.

unemployment is lower and workers will more likely resent foreign competition.

D.

unemployment is higher and workers will more likely resent foreign competition.

Typically polls show that people in the United States under 30 years of age have a more favorable opinion of foreign trade than do people age 65 and over did.

Younger people might have a more favorable view of foreign trade than older people because

A.

younger people are more interested in social networking than important public policy issues.

B.

younger people have less career risk as a result of trade policy.

C.

younger people are usually opposed to anything that older people prefer.

D.

younger people have more career risk as a result of trade policy.

Answer 1

1> B

When trade occurs, it is a win-win situation for both the countries. Thus trade is beneficial for both countries. But, it may not be the best case for all individual. Suppose there is a domestic cotton supplier in the US. If US imports cotton at a cheap price, that will be bad for the US domestic supplier.

2>  D

During recession, the unemployment rises. At that time, they want more domestic suppliers so that people get job. Thus, they are against foreign trade at the time of recession.

3> B

Younger people are less into mechanical jobs and older ones are the first who get laid off first. So, younger generation have less career risk.