Which of the Following Creates an Obstacle to Pursuing Freer

question 5

Multiple Choice

Which of the following creates an obstacle to pursuing freer international trade?

• A)Consumers do not recognize their potential gains
• B)Losses are widespread
• C)Domestic producers do not recognize their potential losses
• D)Government has plenty of political will and support to remove trade barriers
• E)Consumers can easily organize to demand free trade

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Definitions:

Complementary Good

A product or service that is typically used or consumed together with another good or service, increasing demand for one another.

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity demanded, balancing the market.

Equilibrium Quantity

The quantity of goods supplied is equal to the quantity of goods demanded at the market equilibrium price.

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.