The Benefits of Protective Tariffs Are

question 130

Multiple Choice

The benefits of protective tariffs are

• A) they increase the revenues of the government that has implemented them.
• B) they decrease the cost of the product to the consumer (end user).
• C) they help develop friendlier trade relations with loyal trading partners. Both parties are protected.
• D) they protect domestic jobs by encouraging cost-sensitive consumers to purchase domestic products.

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Definitions:

Demand-Management Policy

Government policies aimed at influencing the level of demand in the economy in order to achieve economic objectives like controlling inflation or stimulating growth.

Stagflation

An economic condition characterized by slow growth, high unemployment, and rising prices, presenting a challenge for policy makers.

Inflation Rate

The speed at which the average cost of products and services increases, leading to a decrease in the value of money.

Stagflation

An economic condition characterized by slow growth, high unemployment, and high inflation, presenting a challenging environment for monetary policy.