One Reason for the Success That Firms Have in Getting

question 128

Multiple Choice

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify.Which of the following is a second reason?

• A)The costs that tariffs and quotas impose on consumers are large in total but relatively small per person.
• B)People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote.
• C)Firms that benefit from trade barriers have more money to lobby government officials to support the barriers than do firms that are harmed by trade barriers.
• D)The benefits from free trade are less than the costs.

---

Definitions:

Dysfunctional

Referring to something that is not operating normally or effectively, especially in the context of social institutions or processes.

Bloodshed

The killing or wounding of people, typically on a large scale during conflicts or violence.

Religious Fervour

Intense and passionate devotion or zeal towards one's religion.

Collective Action

The efforts of a group of people working together towards a common goal, often in pursuit of social, political, or environmental change.