Which of the Following Arguments Is Sometimes Used in Support

question 70

Multiple Choice

Which of the following arguments is sometimes used in support of free trade?

• A) Free trade allows firms to increase output and take advantage of lower average production costs.
• B) Free trade can decrease the competition faced by domestic producers.
• C) Free trade can decrease the diversity of products available to consumers.
• D) Free trade is necessary to national security.

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Definitions:

Fixed Business Location

A permanent place of business from which a company's day-to-day operations are conducted.

Standard Mileage Rate

A predetermined rate used to calculate deductions for business-related vehicle expenses based on miles driven.

Mileage Deduction

A tax deduction that allows taxpayers to deduct vehicle expenses for business, medical, moving or charitable reasons, based on miles driven.

Second Job

Employment taken in addition to one's primary job, often to earn extra income.