Why don't countries specialize in the production of just a few goods for which they have a comparative advantage? O Doing so would limit innovation in other industries. In most cases, resource drains would accompany the continually increasing production of a product specialist. O Doing so would limit innovation in the core industries, because there would be little incentive for it. In most cases, increasing opportunity costs would accompany the continually increasing production of a product specialist. Question 9 The long-term trend in barriers to trade can be characterized as follows: The number of claims brought to the WTO dispute resolution department has skyrocketed. Trade barriers have generally been reduced, and means of trade have generally been increased. The long-term trend has been the steady increase in tariffs and import quotas. Trade barriers have generally increased, and means of trade have generally been increased. Question 10 What is the primary argument supporting protectionism? Free trade enables political adversaries to benefit. Protectionism drives innovation because nations need to develop or improve their comparative advantage for a good. Protectionism is a way to reduce inflation. O Free trade can lead to job loss and lower wages.
