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:

Demographic Group

A segment of the population defined by certain characteristics such as age, race, gender, or income, used in statistical analysis and marketing.

Economic Life Cycle

The different stages an individual goes through from dependence to independence, potentially to wealth accumulation, and finally to retirement and dependence once more, in terms of earning and spending.

Savings Rates

The portion of disposable income that individuals, businesses, or economies save rather than spend on consumption, usually expressed as a percentage.

Permanent Income

A person’s normal income.