Which of the Following Reasons Explains Why Rich Countries Persistently

question 36

Multiple Choice

Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?

• A) The trade restrictions make workers in poor countries better off.
• B) The trade restrictions benefit an organized visible special interest in rich countries.
• C) The trade restrictions make textile consumers better off.
• D) Rich countries have a strong need for the revenue from these trade restrictions.

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Definitions:

Natural Resources

Assets that are found in nature and are used for economic gain, such as oil, forests, minerals, or water.

Depletion Expense

An accounting approach for allocating the cost of extracting natural resources from the earth over the period of their extraction.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.

Salvaged Materials

Materials that have been recovered or repurposed from obsolete or discarded sources, often used in manufacturing or construction.