Public Choice Theory Indicates That Tariffs, Quotas, and Other Trade

question 21

Multiple Choice

Public choice theory indicates that tariffs, quotas, and other trade restrictions are primarily the result of the

• A) political clout of foreigners.
• B) political clout of domestic consumers.
• C) political power of the special interest groups.
• D) attractiveness of sound economic policies to elected political officials.

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Definitions:

Price Sunglasses

The amount of money required to purchase eyewear designed to protect the eyes from the sun's harmful rays.

Market Equilibrium

The condition in a market where the quantity supplied equals the quantity demanded, resulting in no surplus or shortage and stable prices.

Quantity Sunglasses

The total number of sunglasses that buyers are willing to purchase at a given price.

Supply Sugar

Refers to the total amount of sugar that producers are willing and able to sell at a given set of prices, over a specific period of time.