Which of the Following Statements Is True

question 30

Multiple Choice

Which of the following statements is true?

• A) Because of the transitional problems affecting some factors of production, the net benefits of free trade are generally negative.
• B) Most economists are in favor of opening markets and extending international trade throughout the world.
• C) Because of the compelling case for free trade, there are very few strong opponents and arguments against free trade remaining in the world today.
• D) Cheap labor in foreign countries can almost always out-compete expensive labor in the United States.

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Definitions:

Collection Delay

The time lag between when a payment is made by a buyer and when the funds become available to the seller.

Average Daily Float

Indicates the average amount of un-cleared checks or unprocessed transactions in a company's bank account over a certain period, impacting the available balance.

Cheques

A method of payment that allows an individual to instruct their bank to pay a specific amount from their account to another party.

Daily Interest Rate

This is the interest rate applied to a loan or investment for a single day, often used in calculating accrued interest over a period.