The Case for Free Trade Is Based on the

question 51

Multiple Choice

The case for free trade is based on the

• A) theory of balanced growth.
• B) theory of absolute advantage.
• C) argument for a diversified economy.
• D) theory of comparative advantage.

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Definitions:

Organic

Referring to food or farming methods that do not use artificial chemicals, GMOs, antibiotics, or hormones.

Monopoly

A market structure characterized by a single seller selling a unique product in the market.

Long Run Equilibrium

A state in which all firms in a market are earning normal profit and all inputs can be adjusted, leading to market stability.

Short-run Profit

The excess of revenues over costs within a brief period, not accounting for adjustments in all resource inputs or long-term sustainability.