A Major Reason Why It Is Difficult to Lower the Barriers

question 240

Multiple Choice

A major reason why it is difficult to lower the barriers to free trade is

• A) that total benefits are less than total costs from free trade.
• B) the uneven distribution of gains and losses from free trade.
• C) the loss of jobs without any gain of jobs from free trade.
• D) the inability to compensate losers from free trade.
• E) that the barriers allow us to compete with cheap foreign labor.

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Definitions:

Reasonable Profit

A profit margin that is considered fair and acceptable, taking into account the costs of goods sold, operating expenses, and market standards.

Proper Quality

The condition of a product or service meeting the expected and required standards, often to satisfy customer needs or comply with regulations.

Continuous Supply

A method of inventory management that ensures a constant availability of necessary materials or products.

Colluded

Pertains to an agreement, often secretive, between parties to limit competition or deceive others, frequently seen as unethical or illegal in business practices.