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jeyben [28]
3 years ago
5

All of the following are considered benefits of free trade EXCEPT A) quota reduction. B) growth of trade. Reactivate C) protecti

ve tariff reduction. Reactivate D) protection of domestic industries.
Business
1 answer:
Scorpion4ik [409]3 years ago
7 0

Answer:

D. Protection of domestic industries

Explanation:

Free trade is practiced when there are no restrictions on import and export of goods and services. The major objective of free trade is to facilitate growth of trade in a country.

All the available options are benefits of free trade except protection of domestic industries. There will be a tough competition for domestic industries where free trade is practiced because of the free flow of goods and services from foreign countries which can lead to excess supply in the market and thereby erodes the profitability of the domestic industries.Imported goods can also be cheaper compared to locally manufactured goods and this will make local goods unattractive to consumers, leaving domestic industries exposed to low demand.

So one of the benefits of free trade is not protection of domestic industries.

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A corporation is to make profit

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Most consumers decide on a product using price as the number one factor

Explanation:

Sale prices could make a market more competitive and it is also a pricing strategy.

If an entrepreneur set the price as high as s/he thinks s/he can it could take her/him out of competition in the market and it would leave her/him without profit.

Small business don't set their prices according to their business size but to the economic factor, because consumers first decide based on the economic factor because people can't buy what they can't afford.

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3 years ago
In his book The Optimum Quantity of Money​, Milton Friedman talks about a helicopter dropping​ $2,000 over a community. The cash
Pepsi [2]

Answer:

A) Somewhat​ effective, but only to the extent that most of the tax cut is concurrently spent on domestic​ output, that multiplier effects​ occur, and crowding out is small.

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First of all, the larger amount of money would increase the inflation rate since aggregate supply hasn't increased. The number of goods and services offered do not vary, then only thing that varies is the amount of disposable money.

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This type of policy can be very effective under conditions where deflation or inflation rates are near 0 or even negative. Although high inflation is very bad for the economy, a small amount of inflation is always needed to boost economic growth. The healthy inflation is around 1.5 - 2% per year. This way salaries and wages can grow, pushing aggregate demand and supply.

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