If Adjustment Costs Associated with Removing Trade Restrictions Are High

question 35

Multiple Choice

If adjustment costs associated with removing trade restrictions are high, then

• A)consumers will end up worse off because government payments to workers who lost their jobs will increase.
• B)the benefits of free trade can be used to compensate workers who lost their jobs.
• C)the benefits of free trade will be negative.
• D)there are no benefits of free trade.
• E)None of these

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Definitions:

Intracompany

Pertaining to activities or transactions within the same company, involving different branches or divisions.

Industry Averages

Statistical benchmarks that measure the average performance, such as profitability or growth, of companies in a specific industry.

Unprofitable Segment

A division or part of a business that does not generate profit and may drain resources from the more profitable segments.

Discontinued Operations

Parts of a company's core business or product lines that have been discontinued or sold.