How Do High Tariffs and Other Restraints on International Trade

question 115

Multiple Choice

How do high tariffs and other restraints on international trade affect the prosperity of a nation?

• A)They increase domestic employment and thereby promote the growth of real GDP.
• B)They prevent the nation from fully realizing potential gains from specialization,exchange,and competition,thereby reducing economic growth.
• C)They tend to reduce rent-seeking and lobbying by producers and thereby promote economic growth.
• D)Both a and c are correct.

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Definitions:

Medulla

The base of the brainstem; it controls vital life-sustaining functions like heartbeat, breathing, blood pressure, and digestion.

Corpus Callosum

A wide band of nerve fibers connecting the two hemispheres of the brain, facilitating communication between them.

Hypothalamus

A section of the brain responsible for hormone production and regulation of essential bodily functions, including temperature, mood, and hunger.

Cerebellum

A part of the brain located at the back and lower part of the skull, essential for coordination, precision, and accurate timing of movements.