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Which of These Occurs If an Economy Is Opened to Trade

Question 21

Multiple Choice

Which of these occurs if an economy is opened to trade?


A) Free trade might increase the efficiency with which a country uses its resources.
B) Economies of small-scale production would not be available as trade expands the size of the total market available to domestic firms.
C) Free trade would decrease a country's stock of resources as increased supplies of labour and capital from abroad become available for use within the country.
D) Domestic producers would be stimulated to look for new ways to increase their productivity.
E) Prices for consumer goods may increase

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