Which of the Following Statements Is True

question 254

Multiple Choice

Which of the following statements is true?

• A)Free trade benefits a country when it exports but harms it when it imports.
• B)"Voluntary" limits on Canadian exports of hogs are better for the United States than U.S.tariffs placed on Canadian hog exports.
• C)Tariffs and quotas differ in that tariffs work like a tax and therefore impose deadweight losses,whereas quotas do not impose deadweight losses.
• D)Free trade benefits a country both when it exports and when it imports.

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Definitions:

Venezuela's Economy

The economic system of Venezuela, characterized by its heavy reliance on oil exports and recent experiences of hyperinflation and social upheaval.

Bolivarian Socialism

A political and economic ideology based on the visions of South American liberator Simón Bolívar, focusing on the redistribution of wealth, land reform, and nationalization of key industries.

Laissez-Faire

A hands-off approach to economic policy where government intervention in business affairs is minimized.

Market System Characteristics

Features distinctive to market economies, such as private property, profit motive, consumer sovereignty, and competition.