Which of the Following Arguments Supports the Idea of Free

question 35

Multiple Choice

Which of the following arguments supports the idea of free trade?

• A) Dumping rules and tariffs should be stricter in developing countries.
• B) International trade must take place without any interference.
• C) Organizations should prefer local workers to foreign workers.
• D) Local businesses should obtain help from governments.
• E) Governments should subsidize exporters to promote global trade.

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Definitions:

Quantity Demanded

The entire quantity of a product or service that buyers are ready and capable of buying at a certain price point.

Price

The amount of money required to purchase a good or service, determined by various factors including supply, demand, production cost, and competition.

Total Revenue

The total amount of money a firm receives from sales of its goods or services.

Price Elasticity

A measure of how the quantity demanded of a good or service changes in response to a change in its price.