Which of the Following Statements Describes Reasons Why Free Trade

question 3

Multiple Choice

Which of the following statements describes reasons why free trade is beneficial for the United States?

• A) Free trade increases consumer surplus for imported goods that are cheaper than U.S. goods.
• B) Free trade directs U.S. resources to those goods and services for which the United States has a comparative advantage.
• C) Through specialization the U.S. and its trading partners can use the same overall amount of resources to produce and consume a larger amount of goods.
• D) All of these statements are correct.

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Definitions:

Related Job Duties

Tasks or responsibilities that are associated with or pertinent to a specific job role or profession.

Resistance To Change

The reluctance or opposition to modifications in processes, systems, or organizational structures, often due to fear of the unknown or loss of comfort.

Improved Compensation

An enhancement in the salary, wages, and benefits that employees receive in exchange for their work.

Incentives

Rewards or benefits offered to encourage a specific action or behavior.