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:

Bankruptcy Relief

Legal protection granted to individuals or entities that are unable to repay their debts, allowing them to restructure or eliminate obligations under the supervision of a bankruptcy court.

Chapter 7

A type of bankruptcy under U.S. law that involves liquidating a debtor's assets to repay creditors.

Chapter 11

A provision of the United States Bankruptcy Code that allows businesses to reorganize their debts and continue operating.

Chapter 13

A section of the U.S. bankruptcy code allowing individuals earning regular income to develop a plan to repay all or part of their debts.