Which of the Following Creates an Obstacle to Pursuing Freer

question 5

Multiple Choice

Which of the following creates an obstacle to pursuing freer international trade?

• A)Consumers do not recognize their potential gains
• B)Losses are widespread
• C)Domestic producers do not recognize their potential losses
• D)Government has plenty of political will and support to remove trade barriers
• E)Consumers can easily organize to demand free trade

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing to purchase.

Constant Marginal Cost

Describes a situation in production where the cost of producing an additional unit of output is the same, regardless of the level of production.

Profit-Maximizing

A strategy or point where a firm achieves the highest possible profit based on its production and selling activities.

Monopolist

A person, company, or entity that holds exclusive control over the market for a particular good or service, without competition.