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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