A Common Fallacy That Is Used to Oppose Trade Is

question 51

Multiple Choice

A common fallacy that is used to oppose trade is the idea that

• A) the only gains from trade go to the rich, so the poor must lose.
• B) "you get what you pay for."
• C) "if it's not broken, don't fix it."
• D) one country's gain must be another's loss.
• E) what is t for one is t for all.

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Definitions:

Dominant Strategy

A strategy in game theory that is best for a player regardless of the strategies chosen by the other players.

Economic Profit

The disparity between total income and the sum of all expenses, encompassing direct and indirect costs.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, thereby controlling the entire market supply.

Dominant Strategy

A strategy that yields the best outcome for a player, regardless of the strategies chosen by other players in a game.