To Explain the Growth in Free Trade After World War

question 52

Multiple Choice

To explain the growth in free trade after World War II, barriers to increased free trade can only be overcome when a single state is powerful enough to persuade other states to go along. This is called the

• A) costs and adjustments theory.
• B) regionalization theory.
• C) liberal trade theory.
• D) hegemonic stability theory.

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Definitions:

Positive Statement

An objective statement based on factual evidence that can be tested and validated, often describing what is, rather than what ought to be.

Microeconomics

A branch of economics that focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on aggregate changes in the economy such as GDP and unemployment.

Microeconomist

a specialist who studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.