If the Economic Arguments Against Tariffs and Quotas Are That

question 79

Multiple Choice

If the economic arguments against tariffs and quotas are that they are very costly for the macroeconomy, why are they imposed?

• A) The costs to individual consumers are small, whereas individual producers gain much from such trade barriers.
• B) Consumers have very large lobbying budgets.
• C) The costs to individual consumers are large, whereas individual producers gain little from such protection.
• D) The domestic prices of protected goods fall after the tariff or quota is imposed.

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Definitions:

Unloaded Gun

A firearm that does not contain any ammunition in its chamber or magazine.

Mens Rea

A legal term from Latin meaning "guilty mind"; it denotes the mental state or intent a person must have at the time of committing a crime for it to be intentional.

Actus Reus

The physical act or unlawful omission that constitutes the execution of a crime, as opposed to the mental intent to commit it.

M'Naghten Test

A legal criterion for determining insanity, which holds that a defendant is not responsible for their criminal actions if, due to a mental disorder, they did not understand the nature of their acts or did not know right from wrong.