In a Situation of Free Trade

question 6

Multiple Choice

In a situation of free trade,

• A)countries with comparative advantage will export more than countries with comparative disadvantage import.
• B)the total quantity of an item exported will be greater than the total quantity imported.
• C)importing countries will always produce some good, so that total quantity imported is less than total quantity exported.
• D)the total quantity of an item exported will equal the total quantity imported.

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Definitions:

Resourceful

Able to deal skillfully and promptly with new situations, difficulties, etc.

Unforeseen

Refers to something not anticipated or predicted.

Appetite for Chaos

A predisposition towards or enjoyment of situations that are unpredictable and disordered.

Entrepreneur

An individual who initiates, organizes, and operates a business venture, taking on financial risks in the hope of profit.