Assume a Country Agrees to a Free-Trade Act with Another

question 44

Multiple Choice

Assume a country agrees to a free-trade act with another country.In the process,some individuals are displaced from their jobs,thus the free-trade act results in a negative externality.

• A) False
• B) True
• C) Only if those who were displaced are not compensated with another job or income transfer.
• D) Only if those who were displaced were compensated with another job or income transfer.

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Definitions:

Escalation Of Commitment

The phenomenon of investing increasing resources in a decision, action, or project even when it is failing, based on the hope that things will improve.

Personal Accountability

The willingness to take responsibility for one's own actions, decisions, and the subsequent outcomes or results.

Logical But Impractical Decisions

Decisions that make sense from a rational standpoint but are not feasible or practical in reality.

Increased Uncertainty

Refers to situations where there is a higher degree of unpredictability regarding the future or outcomes of events.