Which Statement Is True of Tariff Reductions

question 80

Multiple Choice

Which statement is true of tariff reductions?

• A) Reciprocal tariff liberalization has quickly become widespread to support free trade.
• B) Tariff reductions primarily benefit import-competing industries within a nation.
• C) Tariff reductions lead to increased foreign competition that undermines the welfare of a nation.
• D) Tariff reductions can increase the overall welfare of a nation when affected industries are compensated for their losses.

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Definitions:

Social Facilitation

The tendency for individuals to perform differently when in the presence of others, typically showing improvement on tasks they are good at.

Zajonc's Drive

A theory proposing that the mere presence of others can enhance individual performance on simple tasks but hinder it on complex tasks.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with increased activity in the central nervous system.

Evaluation Apprehension

The concern or anxiety individuals feel when they know they are being observed and evaluated by others.