How Do High Tariffs and Other Restraints on International Trade

question 52

Multiple Choice

How do high tariffs and other restraints on international trade affect a nation's prosperity?

• A) They increase employment and thereby promote the growth of GDP.
• B) They prevent a nation from fully realizing the potential gains from specialization, exchange, and competition.
• C) They protect domestic producers and thereby promote economic growth.
• D) Both a and c are correct.

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Definitions:

Adaptation Process

The method by which individuals or groups adjust to changes in their environment or circumstances.

Scope

The extent of the area or subject matter that something deals with or to which it is relevant; often defined at the beginning of a project.

Venue

A place where an event or meeting is held.

Emotional State

An individual's current feelings or mood, which can influence their thoughts and behavior.