Which of the Following Correctly Describes Free International Trade in Accordance

question 71

Multiple Choice

Which of the following correctly describes free international trade in accordance with comparative advantage?

• A)It is typically favored by producers in importing countries.
• B)It is typically favored by producers in exporting countries,but hated by their workers.
• C)It is typically favored by producers in exporting countries,including their workers.
• D)It is typically hated by consumers in importing countries.
• E)It is typically hated by farmers,but looked upon favorably by manufacturers.

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Definitions:

Expected Return

The weighted average of all possible returns from an investment, with the weights being the probabilities of each outcome.

Beta

The assessment of a stock's price movements compared to the aggregate market.

Unsystematic Risk

The risk associated with individual assets, such as a company's stock, that can be mitigated through diversification.

Beta

A standard for evaluating the unpredictability, or fundamental risk, of a security or diversified portfolio in contrast with the entire market.