Which of the Following Is a Reason for the Pressure

question 26

Multiple Choice

Which of the following is a reason for the pressure for greater protectionism that occurred during the 1980s and early 1990s?

• A) The U.S. Congress erected an enormous wall of tariff barriers.
• B) Japanese economic failure strained the world trading system.
• C) The persistent trade surplus in the United States strained the world trading system.
• D) Many countries found ways to get around GATT regulations.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount they receive when the good is sold.

Producer Surplus

The gap highlighting the difference between the initial asking price by sellers for goods or services and the ultimately received price.

Specific Tax

A tax that is levied as a fixed amount per unit on a particular good or service.

Inelastic Demand

A situation where demand for a product or service is relatively unmoved or less sensitive to changes in price.