When trade is free, patterns of trade and trade flows result from
A) the collective decisions of a few importers and exporters, as well as the governments of the countries in which they reside.
B) the collective decisions of a few importers and exporters, as well as millions of private households and firms.
C) the independent decisions of thousands of importers and exporters, as well as millions of private households and firms.
D) the independent decisions of thousands of importers and exporters, as well as the governments of the countries in which they reside.

Question

Quizplus · Accepted Answer

Trade patterns and flows in a free trade environment are determined by the independent decisions of thousands of importers and exporters, along with the choices made by millions of private households and firms, without direct government intervention dictating those decisions.

When Trade Is Free, Patterns of Trade and Trade Flows