Which of the Following Occurs When Higher-Cost External Producers Are

question 91

Multiple Choice

Which of the following occurs when higher-cost external producers are replaced by lower-cost external producers within the free trade area?

• A)Trade creation
• B)Trade correction
• C)Trade balancing
• D)Trade diversion

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Definitions:

Lactose Intolerant

A condition where the body cannot easily digest lactose, a type of sugar found in milk and dairy products.

Lactase

An enzyme found in the small intestine necessary for the digestion of lactose, the sugar found in milk.

Digestive System

Organ system that consists of digestive organs (stomach, intestines, etc.) and accessory organs (liver, etc.); ingests and digests food; absorbs nutrients and eliminates wastes.

Photosynthesis

A biochemical process in green plants and certain other organisms that converts light energy into chemical energy, using carbon dioxide and water to produce glucose and oxygen.