Multiple Choice
Which of the following is an example of a public solution to externalities?
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7. Externalities
Public Solutions to Externalities
Multiple Choice
Which of the following is not an obstacle to increased international economic integration?
A
Cultural and language differences
B
Differences in regulatory standards
C
Political instability
D
Reduction of trade barriers
Verified step by step guidance1
Understand the concept of international economic integration, which refers to the process where countries reduce barriers to trade, investment, and movement of goods, services, and capital to create a more interconnected global economy.
Identify common obstacles to international economic integration, such as cultural and language differences, differences in regulatory standards, and political instability, all of which can hinder smooth economic interactions between countries.
Recognize that 'reduction of trade barriers' actually facilitates international economic integration by making it easier for countries to trade and cooperate economically.
Compare each option to determine which one acts as a facilitator rather than an obstacle to integration.
Conclude that since 'reduction of trade barriers' promotes integration, it is not an obstacle, unlike the other options listed.
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