Objections to Free Trade

question 51

Multiple Choice

Objections to free trade

• A)often come from those who are harmed by trade
• B)make no sense because everyone benefits from trade
• C)usually arise outside of the United States
• D)are not economically rational
• E)reflect a lack of understanding of the benefits of international trade

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Definitions:

Elastic Demand

A situation where the demand for a product is sensitive to price changes, often resulting in significant changes in demand when prices fluctuate.

Inelastic Supply

An instance in which a good's supplied amount remains largely unaffected by variations in its price.

Price Elastic

The responsiveness of the quantity demanded or supplied of a good to a change in its price.

Tax Imposition

The act of levying taxes on individuals, corporations, or goods and services, typically by government authorities to generate revenue.