Which of the following is a TRUE statement?
A) Everyone benefits from free trade.
B) Exporters benefit from trade and importers do not.
C) Consumers benefit from trade and producers do not.
D) Free trade harms domestic producers of goods that face import competition.
Answer: D
You might also like to view...
Which of the following observations is true?
A. Free markets will achieve all of society’s goals. B. The ability to buy goods is divided equally among consumers. C. The market leads to efficiency in production through the profit motive. D. The market system encourages firms to use inputs wastefully.
A prominent argument against the use of price ceilings is:
A. they lead to a surplus and a waste of society's resources. B. they are unfair. C. they raise corporate profits. D. they lead to rent seeking.
A technological advance that increases labor productivity will:
a. lower wages. b. decrease the demand for labor as fewer workers are needed. c. decrease the supply of labor as fewer workers are needed. d. increase the demand for labor as MP rises. e. decrease the demand for labor as MP falls.
A perfectly competitive firm has a horizontal demand curve because it can sell as much as it wants at the market price
a. True b. False Indicate whether the statement is true or false