Free Trade Based on Comparative Advantage Is Economically Beneficial Because

question 13

Multiple Choice

Free trade based on comparative advantage is economically beneficial because:

• A)it promotes an efficient allocation of world resources.
• B)it increases competition.
• C)it provides consumers with a wider range of products.
• D)of all of the above reasons.

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Definitions:

Compensation

A psychological strategy whereby an individual tries to counterbalance perceived deficiencies by emphasizing strengths in other areas.

Phallic Stage

A phase in Freudian psychosexual development, occurring between about ages 3 and 6, during which the libido is centered on the genital area.

Industry

The production of goods or services within an economy, characterized by sectors like manufacturing, services, and technology.

Initiative

The ability to assess and initiate things independently, often related to taking the first step in actions without being instructed.