Free Trade Policies May Lead to

question 92

Multiple Choice

Free trade policies may lead to

• A) a decrease in world output.
• B) price increases in world markets.
• C) some labor sectors experiencing some short-term job loss.
• D) none of the above.

---

Definitions:

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's earnings and assets.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Straight-Line Method

A method of calculating depreciation of an asset, which assumes the asset will lose an equal amount of value each year over its useful life.

Discount on Bonds Payable

Discount on bonds payable represents the difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.