Howard Believes That There Should Be No Trade Restrictions for Any

question 127

Multiple Choice

Howard believes that there should be no trade restrictions for any reason. What effect would Howard say that trade restrictions have on prices?

• A) He would argue that by encouraging competition with trade restrictions, prices are likely to decrease.
• B) He would argue that restrictions would cause greater competition and therefore lead to higher prices.
• C) He would say that trade restrictions have no impact on prices, but they do restrict consumers' choices.
• D) He would say that restrictions reduce competition and therefore cause an increase in prices.
• E) He would argue that trade restrictions increase prices because they break up domestic monopolies.

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Definitions:

Public Relations

The strategic communication process that builds mutually beneficial relationships between organizations and their publics.

Conjunction Fallacy

A logical fallacy that occurs when people assume that specific conditions are more probable than a single general one.

Base Rate Fallacy

A cognitive error where people wrongly judge the likelihood of a situation by ignoring general statistical information and focusing on specific information.

Gambler's Fallacy

The erroneous belief that if something happens more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.