What Is One of the Major Shortcomings of Using Tariffs

question 105

Multiple Choice

What is one of the major shortcomings of using tariffs or quotas to "save American jobs"?

• A)Trade barriers protect the development of new technology, but the new technology eliminates jobs.
• B)Import restrictions alter the composition of domestic employment, but they have minimal effect on the overall level of domestic employment.
• C)The volume of trade with other nations is limited to a few industries, so trade restrictions would not increase national employment.
• D)Major American firms have produced many products in other countries and would not hire more domestic labor when trade barriers are imposed.

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Definitions:

Decision-Making Environments

Different contexts or settings in which decisions are made, including the amount of information available and the certainty or predictability of outcomes.

Risk Environments

Contexts or situations that contain uncertainties and potential for loss or harm, impacting decision-making processes.

Behavioral Decision Theory

A field of study focusing on the psychology of decision-making processes in individuals and groups.

Complete Certainty

A condition or situation where all relevant information is known and the outcome is guaranteed.