Which of the Following Statements About Trade Is True

question 27

Multiple Choice

Which of the following statements about trade is true?

• A) Unrestricted international trade benefits every person in a country equally.
• B) Trade can benefit everyone in society because it allows people to specialise in activities in which they have a comparative advantage.
• C) People that are skilled at all activities cannot benefit from trade because they do not have an opportunity cost in production.
• D) Trade can benefit everyone in society because it allows people to specialise in activities in which they have an absolute advantage.

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Definitions:

Consumer Debt

Personal debt incurred by an individual primarily for the purchase of consumer goods that are consumable and/or do not appreciate.

Debt Collectors

Individuals or companies engaged in recovering owed money on behalf of themselves or others.

FTC Act

The Federal Trade Commission Act, which established the FTC to prevent unfair competition and protect consumers from anticompetitive, deceptive, and unfair business practices.

Anticompetitive Practices

Business actions that reduce or prevent competition in a market, often scrutinized under competition laws.