Which of the Following Statements Is Not True

question 17

Multiple Choice

Which of the following statements is not true?

• A) Trade is beneficial because it allows more efficient production.
• B) Trade is beneficial because it allows consumers to buy goods at cheaper prices.
• C) Trade is beneficial because it allows all domestic industries to increase production.
• D) Trade is beneficial because it allows consumption beyond the production possibility frontier.

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Definitions:

Pollution

The entry of pollutants into the natural ecosystem resulting in harmful modifications.

External Benefit

An uncompensated benefit that an individual or firm confers on others; also known as positive externality.

Higher Costs

Expenses that exceed the usual or expected amount, which can negatively impact profitability and pricing strategies.

Plastics Manufacturing

The industrial process of producing polymers and polymer-based items, used in various applications from packaging to automotive parts.