According to the Model of Free Trade and Free Factor

question 87

Multiple Choice

According to the model of free trade and free factor migration, given the choice, Americans would prefer ________ because ________.

• A) free trade over free migration; additional benefits would accrue to the migrant population under free migration
• B) free migration over free trade; the benefits are shared across both populations under free migration
• C) free migration over free trade; additional benefits would accrue to Americans under free migration
• D) free trade over free migration; all benefits would accrue to Americans under free trade
• E) None of these answers is correct.

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Definitions:

Government Interference

Actions by a government that affect the market, potentially through regulations, taxes, subsidies, or direct control of industries.

Marginal Cost

Marginal cost is the cost incurred by producing one additional unit of a product or service, often considered for decision-making regarding production levels.

Equilibrium Price

The sale price at which the supply of goods precisely meets the demand in the market.

Fine

A monetary penalty imposed by an authority on individuals or entities as punishment for an offense or infraction.