Asked by
Kookie Smith
on Nov 05, 2024Verified
Which of the following statements is not true?
A) Trade is beneficial because it allows more efficient production.
B) Trade is beneficial because it allows consumers to buy goods at cheaper prices.
C) Trade is beneficial because it allows all domestic industries to increase production.
D) Trade is beneficial because it allows consumption beyond the production possibility frontier.
Domestic Industries
Industries that focus on producing goods and services within a country's borders.
Production Possibility Frontier
a curve depicting all maximum output possibilities for two goods, given a set of inputs when all resources are fully employed.
Efficient Production
A process that maximizes output with the minimum amount of input, using resources in the most effective manner to achieve the highest level of productivity.
- Recognize the arguments for and against protectionism in international trade.
- Understand the theory of comparative advantage and its implications for free trade.
Verified Answer
MM
Learning Objectives
- Recognize the arguments for and against protectionism in international trade.
- Understand the theory of comparative advantage and its implications for free trade.