Which of the Following Statements Is Incorrect

question 41

Multiple Choice

Which of the following statements is incorrect?

• A) Trade makes people better off when preferences differ.
• B) Trade increases productivity through specialization and the division of knowledge.
• C) Non-fraudulent voluntary trade produces both winners and losers.
• D) Trade increases productivity through comparative advantage.

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Definitions:

Externality

An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.

SARS

Severe Acute Respiratory Syndrome, a contagious and sometimes fatal respiratory illness caused by a coronavirus, with a notable outbreak in 2002-2003.

Shipbreaking

The process of dismantling an obsolete vessel's structure for scrapping or disposal.

Public Good

A product or service that is provided without profit to all members of a society, either by the government or by a private individual or organization.