Which of the Following Statements Is True

question 254

Multiple Choice

Which of the following statements is true?

• A)Free trade benefits a country when it exports but harms it when it imports.
• B)"Voluntary" limits on Canadian exports of hogs are better for the United States than U.S.tariffs placed on Canadian hog exports.
• C)Tariffs and quotas differ in that tariffs work like a tax and therefore impose deadweight losses,whereas quotas do not impose deadweight losses.
• D)Free trade benefits a country both when it exports and when it imports.

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Definitions:

Substitutes

Products or services that can be used in place of each other, satisfying the same needs or wants.

Complements

are goods or services that are typically consumed or used together, where an increase in demand for one leads to an increase in demand for the other.

Substitute Product

A product or good that a consumer can use in place of another.

Substitutes

Products or services that can be used in place of each other.