Which of the Following Is(are) the Effect(s) of an International

question 45

Multiple Choice

Which of the following is(are) the effect(s) of an international
Trade agreement that provides an incentive and reward for
Nations NOT to impose tariffs?
I.an increase in world welfare and standard of living
II.an opportunity for low­income nations to exploit the gains
From trade.
III.an opportunity for large countries to improve their terms of
Trade

• A)I
• B)I and II
• C)I and III
• D)I, II, and III

---

Definitions:

Monopolistic Competitors

Companies in a market where many sellers offer products that are similar but not identical, giving each some degree of market power.

Small Companies

Businesses with a smaller scale of operations, employee base, and market presence, often characterized by lower revenues than larger corporations.

Business Firms

Business firms are commercial organizations engaged in the production, distribution, or sale of goods and services for profit.

Differentiated Product

A product that differs from its competitors based on features, quality, branding, or some other characteristics.