Economists Believe That There Are Many Nonmonetary Gains from Further

question 78

Multiple Choice

Economists believe that there are many nonmonetary gains from further trade opening. Which of the following is NOT one of those potential gains?

• A) Economies of scale from increased production decreases costs.
• B) Intensified competition lowers prices.
• C) Governments will be less reliant on tariff revenue.
• D) Diversification of production lowers risks.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.