The Case for Free Trade Is Based on The

question 1

Multiple Choice

The case for free trade is based on the:

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

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Definitions:

Geographic Markets

Areas delineated by geographical boundaries within which a population might reasonably constitute a market for goods or services, often considered in economic and marketing analyses.

Monopoly

A market structure in which a single seller controls all production and sale of a particular product or service.

Sherman Act

A landmark federal statute in the field of United States antitrust law prohibiting monopolistic behaviors.

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at preventing anticompetitive practices in their incipiency, including price discrimination, exclusive dealing agreements, and mergers and acquisitions that substantially lessen competition.