The Efficiency Case Made for Free Trade Is That as Trade

question 31

Multiple Choice

The efficiency case made for free trade is that as trade distortions such as tariffs are dismantled and removed

• A) government tariff revenue will decrease, and therefore national economic welfare will decrease.
• B) government tariff revenue will decrease, and therefore national economic welfare will increase.
• C) deadweight losses for producers and consumers will decrease, hence increasing national economic welfare.
• D) deadweight losses for producers and consumers will decrease, hence decreasing national economic welfare.
• E) government tariff revenue will increase, hence increasing national economic welfare.

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Definitions:

Pent-2-ene

An unsaturated hydrocarbon with a double bond between the second and third carbon atoms in a five-carbon chain.

Oxetane

A four-membered cyclic ether characterized by an oxygen atom bonded to three carbon atoms.

Hybridization

The concept explaining the bonding in molecules by combining atomic orbitals into new hybrid orbitals suitable for pairing with other atoms.

Dialkyl Ethers

Organic compounds consisting of an oxygen atom bonded to two alkyl groups, often characterized by their ether functional group, R-O-R'.