Trade Diversion Reduces Worldwide Efficiency,because

question 108

Multiple Choice

Trade diversion reduces worldwide efficiency,because:

• A)production is diverted to the country with the comparative advantage.
• B)production is diverted from the country with the comparative advantage.
• C)unnecessary trade restrictions are created in the economies.
• D)consumption is diverted to the country having inadequate demand.
• E)the cost of transshipment of the goods increases thus raising their prices in the world market.

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Definitions:

Crime Deterrent

A crime deterrent is any measure or factor that discourages individuals from engaging in criminal behavior, either through fear of consequences or moral persuasion.

Belief Perseverance

is the tendency to maintain one's belief despite receiving new evidence or facts that contradict it.

Belief Perseverance

The phenomenon where individuals continue to adhere to their initial beliefs even in the face of contradictory evidence.

Doubt

A feeling of uncertainty or lack of conviction about something.