Which of These Occurs If an Economy Is Opened to Trade

question 9

Multiple Choice

Which of these occurs if an economy is opened to trade?

• A) Free trade might increase the efficiency with which a country uses its resources.
• B) Economies of small-scale production would not be available as trade expands the size of the total market available to domestic firms.
• C) Free trade would decrease a country's stock of resources as increased supplies of labour and capital from abroad become available for use within the country.
• D) Domestic producers would be stimulated to look for new ways to increase their productivity.
• E) Prices for consumer goods may increase

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Definitions:

Soft Influence Tactics

Strategies used to persuade or influence others in a non-coercive way, such as through personal appeal or logical argument.

Hard Influence Tactics

Strategies or actions used to persuade or coerce others into following a direction or decision, often involving pressure or demands.

Commitment

The state or quality of being dedicated to a cause, activity, or job; wholehearted devotion.

Compliance

The act of conforming to established guidelines, standards, or laws, often required to maintain legal and social acceptability.