Which of the Following Statements Describes Reasons Why Free Trade

question 88

Multiple Choice

Which of the following statements describes reasons why free trade is beneficial for the United States?

• A) Free trade increases consumer surplus for imported goods that are cheaper than U.S. goods.
• B) Free trade directs U.S. resources to those goods and services for which the United States has a comparative advantage.
• C) Through specialization, the United States and its trading partners can use the same overall amount of resources to produce and consume a larger amount of goods.
• D) All of the statements are correct.

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Definitions:

Two-Factor Theory

A psychological theory proposing that human emotions result from a combination of a state of physiological arousal and a cognitive interpretation of that arousal.

Avoidance Learning

is a process by which an individual learns a behavior or response to avoid a noxious or unpleasant situation or stimulus.

Aversive Event

An unpleasant or noxious stimulus that an organism seeks to avoid or escape, often used in aversive conditioning.

Matching Law

A principle stating that the proportion of responses on a particular schedule matches the proportion of reinforcements obtained on that schedule.