Which of the Following Is a Reason for Many Developing

question 12

Multiple Choice

Which of the following is a reason for many developing countries to open their economies to free trade?

• A) Domestic producers do not recognize their potential losses.
• B) Customers do not recognize their potential gains.
• C) The government lacks the political will to remove impediments to development.
• D) Consumers and firms are aware of the products and technology available abroad.
• E) The potential winners from free trade remain largely unaware of the gains from trade.

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Definitions:

Output Produced

The total amount of goods and services produced by a firm or an economy during a specific period.

Input

Resources used in the process of production, including raw materials, labor, and capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of input.

Marginal Product

The extra output generated from increasing a particular input by one unit while keeping all other inputs unchanged.