It Is Argued That Special Interest Groups Are Likely to Take

question 51

Multiple Choice

It is argued that special interest groups are likely to take over and promote protectionist policies, which may lead to a decrease in national economic welfare. This argument leads to

• A) a presumption that in practice a free trade policy is likely to be better than alternatives.
• B) a presumption that trade policy should be shifted to Non-Governmental Organizations, so as to limit taxpayer burden.
• C) a presumption that free trade is generally a second-best policy, to be avoided if feasible alternatives are available.
• D) a presumption that free trade is the likely equilibrium solution if the government allows special interest groups to dictate its trade policy.
• E) a presumption that protectionist policies will better serve a country as a whole than free trade policies.

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Definitions:

Big Data

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Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Gold Standard

historically refers to a monetary system where a country's currency value is directly linked to gold, but in a broader sense, it signifies the highest quality or benchmark measure.

Crowdsourcing

The method of acquiring ideas, services, or content by requesting contributions from a broad group of individuals, particularly from an online community.