You are watching an election debate on television. A candidate says, “We need to stop the flow of foreign automobiles into our country. If we limit the importation of autos, our domestic auto production will rise and the United States will be better off.”
1. Is it likely that the United States will be better off if we limit auto imports? Explain.
2. Will anyone in the United States be better off if we limit auto imports? Explain.
3. In the real world, does every person in the country gain when restrictions on imports are reduced? Explain.