Question

1. Which of the following is NOT an argument against free trade?

(A) Environmental pollution.

(B) Infant industry protection.

(C) Intellectual property theft.

(D) Political expediency.

2. Which of the following moves the supply curve to the right?

(A) An increase in competition.

(B) Better technology.
(C) Lower taxes.
(D) All of the above.

Which of the following does NOT cause economic growth?

(A) An increase in population.
(B) Capital accumulation.
(C) An improvement in technology.

(D) A change in tastes.

Answer 1

Question 1. Which of the following is NOT an argument against free trade - option D - Political expediency

because political expediency means strengthen of political beni fits. it doesn't have any effect or relation with free trade.

option A is wrong because Environmental pollution can be happened by free trade. in a free trade, when a foreign country established their factories, it will cause the Environmental pollution

option B is wrong because Infant industry protection means protect the companies from the foreign companies in a free trade. In a free trade when foreign companies came to any country, the local companies may be not enough prepared for the Competition. so it may be cause the loss of local companies.

Option C is wrong because  Intellectual property theft can be happened by free trade. In a free trade, when many countries participate in a trade, the chances of copying other companies ideas or invention is extremely high.

Question 2. Which of the following moves the supply curve to the right - Option D - All of the above

because the supply curve shift to the right when there is a Increase on supply. and Increase in compition, better technology and lower taxes can increase the profitability of a company. So the company will Increase the production and the supply also Increases. and supply curve shift to right.

Question 3 Which of the following does NOT cause economic growth - option D - A change in tastes

because changes in tastes doesn't cause economic growth. when there is changes in tastes, it cause the changes in fashion and choice of people.

Option A B C are wrong because they causes the economic growth. An increase in population can increase the human resources of a country. Capital accumulation can Increase the wealth. so the investment and profits are also increases and this effect the economic growth.

due to improvement in technology the cost of production of a product is decreases. so the profitability of a company also increases and this effect the economic growth.