In General,tariffs,quotas,and Other Barriers to Free Trade

question 30

Multiple Choice

In general,tariffs,quotas,and other barriers to free trade

• A) never make sense and are difficult to justify under any circumstances.
• B) protect specific interests at the expense of an overall loss of consumer welfare.
• C) create incentives for protected firms and industries to become more efficient and productive.
• D) are necessary if a country is to have a favorable balance of trade.
• E) in the short run may hurt businesses but in the long run benefit a country as a whole.

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Psychological conditions that energize and direct behavior towards specific goals or needs fulfillment.