Why is free trade considered beneficial when consumers pay higher prices for products than they would have within a strictly domestic market?
a. Economists place more emphasis on producers and supply than they do on consumers and demand.
b. Losses experienced within the domestic market are offset by gains within developing countries.
c. The higher prices paid within the domestic market are temporary and usually decline in time.
d. Negative effects experienced by consumers are offset by gains experienced by producers.
d. Negative effects experienced by consumers are offset by gains experienced by producers.
You might also like to view...
Which of the following is necessary for efficient markets?
A) Positive externalities B) Negative externalities C) Pecuniary externalities D) Free-riding
The above figure shows the payoff to two gasoline stations, A and B, deciding to operate in an isolated town. Suppose a $60 fee is required to enter the market. If firm A chooses its strategy first, then
A) firm A will not enter. B) neither firm will enter. C) both firms will enter. D) firm A will enter and firm B will not.
When the markets of an economy are more competitive, economic growth
What will be an ideal response?
Freely floating exchange rates are determined by
A. the forces of supply and demand for currencies. B. the government with a trade surplus. C. the government with a trade deficit. D. the IMF.