Which of the Following Would Be Most Likely to Help

question 36

Multiple Choice

Which of the following would be most likely to help the residents of a nation produce a larger output and consume a wide variety of products at economical prices?

• A) Imposition of tariffs on imported goods.
• B) Quotas that protect domestic businesses against foreign producers that pay workers low wages.
• C) Free trade.
• D) Exchange rate controls.

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Definitions:

Asset Allocation Funds

Mutual funds that invest in a variety of asset classes, such as stocks, bonds, and real estate, to diversify investment risk.

Event-driven Funds

Investment funds that seek to exploit pricing inefficiencies that may occur before or after a particular corporate event.

Market-neutral Hedge Funds

Market-neutral hedge funds aim to achieve returns with minimal exposure to overall market risk by employing strategies that attempt to offset potential losses in the markets.

Volatile Returns

Refers to the significant ups and downs in the value of an investment over a short period.