Economists Consider the Effects of Free Trade on Income Distribution

question 42

Multiple Choice

Economists consider the effects of free trade on income distribution to be ________ important than the effects on overall welfare because ________.

• A) more; the effects on income distribution are major and consequential
• B) less; the effects on income distribution are minor and inconsequential
• C) more; those who are harmed are not compensated by those who gain
• D) less; the wealthy benefit and only the poor lose
• E) less; those who are harmed can be compensated by those who gain

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Definitions:

Acquisition

The process of acquiring control of a company by purchasing its shares or assets, effectively resulting in a change of ownership.

Restricted Shares

types of stock which are subject to certain restrictions, typically related to the vesting period, and are not fully transferrable until certain conditions are met.

Participation in Earnings

A method where stakeholders, usually employees or managers, receive a share of the company's profits, typically based on predetermined criteria.

Non-Controlling Interest

The portion of equity interest in a subsidiary not attributable directly or indirectly to the parent company, reflecting minority shareholders' equity in the subsidiary's net assets.