One Reason Why There May Be a Bias Against Free

question 4

Multiple Choice

One reason why there may be a bias against free trade is that

• A)those harmed by trade have a powerful incentive to lobby against it
• B)people prefer domestically-produced goods to foreign-produced goods
• C)people prefer foreign-produced goods to domestically-produced goods
• D)the terms of trade are too low
• E)the exchange rate is too high

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Definitions:

Noncumulative Preferred Stock

A type of preferred stock that does not entitle the shareholder to dividends that are omitted or not paid during any year.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders the right to vote on corporate matters and receive dividends.

Dividend Payment

A distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or stock.

Dissociation

A process authorized under the Revised Uniform Partnership Act that takes place whenever a partner is no longer associated with the running of the partnership firm.