Which of the Following Statements Is True

question 138

Multiple Choice

Which of the following statements is true?

• A) Free trade will benefit all workers in a nation equally.
• B) As a result of specialization some workers will be displaced and harmed in the short run by free trade.
• C) Free trade leads to lower wages for all workers in both nations.
• D) Specialization will result in a decline in an industry and none of those workers will be able to find other jobs.

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Definitions:

Average Cost

The cost per unit is determined by dividing the overall production cost by the total units produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.

Total Cost

The sum of fixed and variable costs incurred in producing a given level of output.

Computer Software

Programs and operating information used by a computer to perform specific tasks or functions.