If the United States Unilaterally Removed All of Its Trade

question 10

Multiple Choice

If the United States unilaterally removed all of its trade restrictions and moved toward a policy of free trade, international trade theory indicates that

• A) U.S. residents would gain, but people in other countries would be worse off.
• B) people in other countries would gain, but U.S. residents would be worse off.
• C) both U.S. residents and people in other countries would be able to achieve higher income levels.
• D) the average income level would be lower in both the United States and other countries.

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Definitions:

Stimulus-Response Transaction

The process in which a stimulus leads to a response, emphasizing the interaction between a stimulus and an individual's response.

Physiological Arousal

The physical state of being activated or stimulated, resulting in heightened physical functions and a state of readiness.

Cumulative

Incrementally increasing or accumulating over time.

Additive

A substance added to another to enhance or modify its properties, commonly used in food, manufacturing, or chemical processes.