Why Do Consumers Benefit from Free Trade and the Resulting

question 40

Multiple Choice

Why do consumers benefit from free trade and the resulting competition between businesses?

• A) Competition drives away the entrepreneurs who use resources most wisely.
• B) Competition tends to drive down prices and improve quality.
• C) Competition offers consumers fewer choices and makes the marketplace less confusing.
• D) Competition reduces the choices to consumers.

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Definitions:

Internal Validity

The extent to which a study establishes a trustworthy cause-and-effect relationship between a treatment and an outcome.

External Validity

The extent to which the results of a study can be generalized or applied beyond the specific conditions of the study.

Experimental Settings

Environments or arrangements in which experimental research is conducted, designed to isolate and control variables affecting the outcome of the study.

External Validity

The extent to which the results of a study can be generalized or applied to contexts outside the original research setting.