It Is Argued That Special Interest Groups Are Likely to Take

question 51

Multiple Choice

It is argued that special interest groups are likely to take over and promote protectionist policies, which may lead to a decrease in national economic welfare. This argument leads to

• A) a presumption that in practice a free trade policy is likely to be better than alternatives.
• B) a presumption that trade policy should be shifted to Non-Governmental Organizations, so as to limit taxpayer burden.
• C) a presumption that free trade is generally a second-best policy, to be avoided if feasible alternatives are available.
• D) a presumption that free trade is the likely equilibrium solution if the government allows special interest groups to dictate its trade policy.
• E) a presumption that protectionist policies will better serve a country as a whole than free trade policies.

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