Which of the Following Statements Is True

question 147

Multiple Choice

Which of the following statements is true?

• A) Free trade will benefit all workers in a nation equally.
• B) As a result of specialization some workers will be displaced and hence, harmed by free trade.
• C) Free trade leads to lower wages for all workers in both nations.
• D) Specialization will result in a decline in an industry and none of those workers will be able to find other jobs.

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Definitions:

Ordinary Perpetuity

A type of annuity that pays a fixed amount to an investor at regular intervals indefinitely.

Compounded Annually

An interest calculation method where interest is added to the principal once a year, affecting the calculation of future interest.

Compounded Monthly

An interest calculation method where interest is added to the principal balance monthly, causing the total amount of interest to grow at an increasing rate.

Compounded Annually

The method of calculating interest where the total interest is added to the principal once per year, resulting in interest earning interest annually.