Which of the Following Statements Is TRUE

question 39

Multiple Choice

Which of the following statements is TRUE?

• A) Free trade is beneficial only if your country is strong enough to stand up to foreign competition.
• B) Free trade is beneficial only if your competitor does not pay unreasonably low wages.
• C) Free trade is beneficial only if both countries have access to the same technology.
• D) Free trade is never beneficial for developing countries.
• E) Free trade can be beneficial to economic welfare of all countries involved.

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Definitions:

Economic Inefficiency

A situation where resources are not allocated in the most economically effective manner, leading to potential losses in productivity or welfare.

Public Sector

The part of the economy that is controlled by the government and funded by taxpayers.

Representative Democracy

A form of democracy in which citizens elect officials to represent their interests and make governmental decisions.

Small Interest Group

A group of individuals or organizations that, despite its small size, seeks to influence public policy or corporate decisions based on specific common interests or concerns.