Question

Supporters of free trade argue that it creates which economic benefit?
O A. Promoting independence by reducing reliance on foreign goods
B. Protecting workers by enforcing international labor regulations
C. Increasing efficiency by allowing for greater specialization
D. Helping the environment by reducing emissions from shipping

Answer 1

Answer:

C. Increasing efficiency by allowing for greater specialization

Explanation:

A free economy is one where the forces of demand and supply determine production and consumption. The government or the central authority does not interfere with economic activities in a free economy.

In a free economy, the factors of production are held by the private sector. There is increased business competition as entrepreneurs have the freedom to open a business of their choice. Buyers have the liberty to buy from their preferred suppliers.  Businesses are profit-motivated, which forces entrepreneurs to be creative and innovative to win customers and make more sales. They have to specialize and increase their efficiency to be more competitive.