Which of the Following Is an Explanation for the Existence

question 113

Multiple Choice

Which of the following is an explanation for the existence of trade restrictions?

• A)Tariffs generate revenue for the government
• B)Rent seeking
• C)Inefficient quotas
• D)both A and B
• E)both A and C

---

Definitions:

Allocative Efficiency

A state of resource allocation in which goods and services are distributed according to consumer preferences, achieving optimal distribution.

Productive Efficiency

A scenario where goods or services are produced at the lowest possible cost and with maximum efficiency in resource usage.

Nonprice Competition

Strategies companies use to differentiate their product or service based on features, service, quality, or brand image rather than price.

Economic Profits

The net amount remaining when all costs, both obvious and not, are subtracted from the total income.