Question

explain in the simplest and most concise way possible why most economics argue that free trade is good for economic welfare

Answer 1

Economic trade is based on the comparative advantage, i.e. if the nation can produce something at a lower cost they will produce it and supply it to the world, anywhere, where the cost of production is higher the price will be higher too and they will buy those products, This is trade.

It will increase the consumer surplus because now they have the same goods at a lower price and decrease the producer surplus as they have to compete at a lower price, but the overall effect will be benefiting the nation.

A tariff will increase the price and decrease the consumer surplus, increase the output of the inefficient producers and create a dead weight loss. it will waste the resource too. that is why free trade is considered to maximise the economic welfare.