The Efficiency Case Made for Free Trade Is That as Trade

question 31

Multiple Choice

The efficiency case made for free trade is that as trade distortions such as tariffs are dismantled and removed

• A) government tariff revenue will decrease, and therefore national economic welfare will decrease.
• B) government tariff revenue will decrease, and therefore national economic welfare will increase.
• C) deadweight losses for producers and consumers will decrease, hence increasing national economic welfare.
• D) deadweight losses for producers and consumers will decrease, hence decreasing national economic welfare.
• E) government tariff revenue will increase, hence increasing national economic welfare.

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Definitions:

Customer Relationships

The interactions and bonds formed between a business and its customers, crucial for building loyalty and repeat business.

Customer Loyalty

The dedication of a customer to continue buying from or supporting a company's products or services over time, often due to positive experiences or satisfaction.

Value Proposition

A statement that outlines the unique benefits or value that a product or service provides to its customers.

Customer Relationships

The ways in which a business interacts and communicates with its customers to manage and enhance the customer experience, aiming to build loyalty and satisfaction.