Which of the Following Arguments Supports the Idea of Free

question 35

Multiple Choice

Which of the following arguments supports the idea of free trade?

• A) Dumping rules and tariffs should be stricter in developing countries.
• B) International trade must take place without any interference.
• C) Organizations should prefer local workers to foreign workers.
• D) Local businesses should obtain help from governments.
• E) Governments should subsidize exporters to promote global trade.

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Definitions:

Total Variable Costs

The sum of all costs that vary with output level, including costs for raw materials, labor, and other expenses that increase with production.

Output Increases

A situation in which the quantity of goods or services produced in an economy rises.

Production Technique

The method or process used by businesses to produce goods or services, which can vary in efficiency, cost, and quality.

Price of Labor

The wage rate or the amount of compensation workers receive in exchange for their labor.