Which of the Following Is FALSE About Intraindustry Trade

question 65

Multiple Choice

Which of the following is FALSE about intraindustry trade?

• A)Intraindustry trade creates gains from trade.
• B)Intraindustry trade is due to comparative advantage.
• C)Intraindustry trade may involve heightened competition and lower prices for consumers.
• D)Intraindustry trade increases consumer choice.

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Definitions:

Standard Deviation

A measure of the dispersion of returns for a given security or market index, indicating the degree of volatility.

Passive Investment Strategies

Investment strategies that involve minimal buying and selling, often mirroring an index.

Active Trading Strategies

Investment strategies that involve frequent transactions, aiming to exploit short-term price movements to achieve profit.

CAL

Stands for Capital Allocation Line, which represents the risk-reward profile of various portfolios, showing the possible rates of return for a given level of risk.