The Practical Constraints on Trade Include All of the Following,EXCEPT

question 199

Multiple Choice

The practical constraints on trade include all of the following,EXCEPT:

• A) every international transaction involves costs.
• B) production possibilities frontiers for nations are linear.
• C) production possibilities frontiers exhibit increasing costs and diminishing returns.
• D) some industries and individuals in a country may be hurt by an expansion of trade.

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Definitions:

Laissez-Faire Policy

An economic philosophy of free-market capitalism that opposes government intervention.

Tax Rates

The percentage at which an individual or corporation is taxed, which can vary by income or profit level, type of tax, and jurisdiction.

Zero Tax Revenue

A theoretical or policy situation where the government sets tax rates at levels that result in no revenue being collected, often discussed in contexts of extreme tax models.

Velocity of Money

Velocity of money is the rate at which money circulates in the economy, typically measured as the ratio of nominal GDP to the money supply.