Free Trade Does Not Directly Increase Which of the Following

question 37

Multiple Choice

Free trade does not directly increase which of the following?

• A)Choices
• B)Competition
• C)Purchasing power
• D)Exchange rates

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Definitions:

Permits

Official documents or licenses that authorize individuals or companies to undertake certain activities, often subject to regulations.

Pollution

The introduction of contaminants into the natural environment that cause adverse change.

External Costs

Costs that are not reflected in the market price of goods or services, often burdening third parties not involved in the transaction.

External Benefits

Positive effects of a production or consumption activity on third parties not directly involved in the transaction.