Question

1) One false argument against free trade is that it: a) impacts industries differently based on comparative advantage b) reduces employment in the economy as a whole c) can decrease wages in a particular sector d) can reduce employment in a particular sector

2) In a free-floating exchange rate system: a) demand and supply swings are muted by market forces b) involve an exchange rate set entirely by government policy c) exchange rate changes are always easy to predict d) occur when an exchange rate is fixed to gold, for example

Answer 1

1 question)

Answer : option a) impacts industries differently based on comparative advantage.

Comparative advantage is not an argument against free trade.

2 question)

Answer : option a) demand and supply swings are muted by market forces.

In a free floating exchange system an exchange rate is entirely determined mainly by market forces and the demand and supply swings are mainly muted by market forces.