A Free-Trade Agreement Is Likely to Result in

question 222

Multiple Choice

A free-trade agreement is likely to result in

• A) an increase in imported goods and services.
• B) an absolute advantage.
• C) less competition.
• D) productivity increases in all product categories, for all participating nations.

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Definitions:

Machinery

Industrial or commercial equipment and devices designed for specific tasks, contributing to the production or service capabilities of a business.

Cash Flow

The total amount of money being transferred into and out of a business, measuring liquidity, financial flexibility, and overall financial health.

Operating Activities

Business activities related directly to the production, sale, and delivery of a company’s products and services, regarded as the core activities.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.