The recently negotiated North American Free Trade Agreement among Cana

Conclusion: The recently negotiated North American Free Trade Agreement among Canada, Mexico, and the United States is misnamed
Reasoning : because it would not result in truly free trade.

Adam Smith, the economist who first articulated the principles of free trade, held that any obstacle placed in the way of the free movement of goods, investment, or labor would defeat free trade.
So since under the agreement workers would be restricted by national boundaries from seeking the best conditions they could find, the resulting obstruction of the flow of trade would, from a free-trade perspective, be harmful.

Flow:
1) Conclusion
2) Reasoning
3) Adam Smith and his views to support reasoning.

The argument proceeds by


(A) ruling out alternatives
No alternatives mentioned

(B) using a term in two different senses
No different sense is used

(C) citing a nonrepresentative instance
All the instances are representative

(D) appealing to a relevant authority

(E) responding to a different issue from the one posed
No , the only issue is about Free Trade

Our answer is D.