If Two Countries Participate in Free Trade

question 15

Multiple Choice

If two countries participate in free trade:

• A) every individual in each country will benefit.
• B) both countries as a whole may gain from the trade.
• C) one country will benefit, but the other country will experience reduced welfare..
• D) neither country will benefit.

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Definitions:

Attention

The act of focusing thought or consciousness on a specific subject or activity.

Perceptual Constancy

The psychological phenomenon whereby perceivers experience a stable perception of an object even though sensory input may vary widely.

Retinal Image

The visual image produced on the retina of the eye, serving as the basis for visual perception.

Object

An entity, tangible and visible, that can be perceived by the senses.