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:

Semantic Slanting

The deliberate choice of words to create specific emotional responses or to subtly influence perception.

Emotional Impact

The profound effect or influence that an experience, event, or communication has on a person's emotions or feelings.

Finance Policies

Rules, regulations, and practices that govern the management, administration, and planning of financial resources.

Kahneman and Tversky

Two psychologists renowned for their contributions to the understanding of judgment and decision-making psychology, alongside their work in behavioral economics.