One of the Reasons Given for the Imposition of a Protectionist

question 14

Multiple Choice

One of the reasons given for the imposition of a protectionist policy such as a tariff is to

• A) aid other nations in developing their own industries.
• B) increase the welfare of foreign consumers.
• C) increase the welfare of domestic consumers.
• D) protect domestic workers from foreign competition.
• E) slow domestic production.

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Definitions:

Socially Efficient

A condition where resources are allocated in a way that maximizes the overall benefit to society, taking into account all externalities.

Marginal Revenue

The additional income obtained from selling one more unit of a good or service, critical in determining the optimal level of production for a firm.

Profits Maximize

The process or strategy by which a firm seeks to achieve the highest possible return or benefit from its operations and resources.

Monopolist

A single seller in a market who has significant control over the prices and supply of a product or service.