The Argument That Free Trade Is the Best Strategy for Advancing

question 101

Multiple Choice

The argument that free trade is the best strategy for advancing the world's economic development

• A) is one of the most contentious issues associated with economic globalization.
• B) has received very mixed support in research studies.
• C) is a proposition with which almost all economists agree.
• D) is the basis for much protectionist legislation in emerging markets.
• E) was a fundamental element underlying mercantilism in the 16^th century.

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Definitions:

Social Identity Theory

A theory that explains how individuals categorize themselves and others into various social groups, leading to a sense of identity based on group membership.

Realistic Conflict Theory

A social psychological model that explains intergroup conflicts, hostility, and aggression as a result of competition over resources or status.

Self-Serving Bias

A common cognitive bias that leads individuals to attribute their successes to internal factors while blaming external factors for their failures, thus preserving their self-esteem.

Overgeneralized Belief

A cognitive bias where an individual applies a general rule too broadly, assuming that it applies in far more situations than it actually does.