Which Is the Most Accurate Statement

question 40

Multiple Choice

Which is the most accurate statement?

• A)If most economists had to choose between a tariff and a quota,she or he would choose a tariff as the lesser of two evils.
• B)Both tariffs and quotas are basically good for our economy because they keep out foreign imports.
• C)Tariffs and quotas are equally bad for our economy.
• D)Most economists prefer import quotas to tariffs.

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Definitions:

Quantity Supplied

The total amount of a specific good or service that is available to consumers at a current price.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, which can lead to beneficial trade.

Specialize

The process by which individuals, firms, or countries concentrate their efforts on producing a limited variety of goods or services to gain efficiency and improve performance.

Domestic Surplus

The excess of a country's production over its domestic consumption, often leading to exports.