Asked by Regan Mc Mullan on Jul 21, 2024
Verified
What do trade policies do to the standard of living?
Trade Policies
Measures and agreements set by governments to control exports and imports with the aim to protect domestic industries, manage the balance of payments, and promote economic growth.
Standard Of Living
The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a certain geographic area.
- Evaluate the effect of government policies on the economy's standard of living.
Verified Answer
SL
Sophie LafondJul 25, 2024
Final Answer :
Trade policies reduce both imports and exports. While they leave the trade balance unchanged, they reduce trade overall and so reduce the gains from trade. This lowers the standard of living. U.S. industries that produce goods on which imports are reduced may gain, but overall there is a loss.
Learning Objectives
- Evaluate the effect of government policies on the economy's standard of living.