The Sentence "The United States Should Adopt More Open Trade

question 23

Multiple Choice

The sentence "The United States should adopt more open trade policies because they historically have caused increased economic growth." is an example of a(n) ______ statement.

• A) unequivocally true
• B) normative
• C) positive
• D) unequivocally false

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Definitions:

Net Social Gain

The overall benefit to society, created when the total value generated by an action exceeds the total costs associated with it.

Rent-Seeking Activities

Practices of gaining economic benefits without contributing to productivity, typically through manipulation of the political environment.

Monopoly Power

The exclusive control by one company over an entire industry or market, allowing it to dictate terms and prices without competition.

Welfare Loss

This refers to the decrease in economic efficiency that occurs when the equilibrium for a good or service is not achieved or is distorted by external intervention, leading to a loss of social surplus.