The Case for Free Trade Is Based on the

question 51

Multiple Choice

The case for free trade is based on the

• A) theory of balanced growth.
• B) theory of absolute advantage.
• C) argument for a diversified economy.
• D) theory of comparative advantage.

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Definitions:

Return on Investment

A financial performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of the investment.

Investment Opportunity

An asset or item that can potentially generate a significant return or profit through appreciation, dividends, or interest.

Operations

The day-to-day activities involved in running a business, focusing on producing goods and services efficiently and effectively.

Variable Maintenance Costs

These are expenses that fluctuate in direct proportion to the level of activity or production, such as the costs of repairing machinery which increase with more intensive use.