Which of the Following Is NOT a True Statement Regarding

question 180

Multiple Choice

Which of the following is NOT a true statement regarding free trade?

• A) Free trade promotes specialization and efficient production.
• B) Free trade generally reduces the domestic prices of imports.
• C) Free trade may stimulate economic growth through export sales.
• D) Every individual in a country gains short-term benefits from free trade.

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Definitions:

Economies of Scale

Cost advantages that entities obtain due to their scale of operation, leading to a reduction in per-unit cost as production increases.

Nation-State

An independent political unit with specific boundaries, a stable population, governance structures, and the ability to engage in diplomatic relations with other political entities.

Just Cause

A criterion under the just war theory, which states that to be morally permissible, a war must be waged only for honorable motives.

International Organization

An entity established by a treaty or other instrument governed by international law and possessing its own international legal personality.