Which of the Following Statements Is True

question 35

Multiple Choice

Which of the following statements is true?

• A)Economic efficiency would be increased if the United States eliminated all of its trade restrictions,but only if all other countries eliminated their trade restrictions too.
• B)The U.S.economy would gain from the elimination of its tariffs but not from the elimination of its quotas.
• C)Eliminating its tariffs and quotas unilaterally would not benefit the United States because this would remove the leverage it would have to persuade other countries to eliminate their trade restrictions.
• D)The U.S.economy would gain from the elimination of tariffs and quotas even if other countries do not reduce their tariffs and quotas.

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Definitions:

Negative Income Tax

A system of social welfare that provides income to individuals or families below a certain income level, effectively supplementing their income.

Medicaid

A government-sponsored insurance program in the United States providing health care coverage to low-income individuals and families.

Libertarians

Individuals who advocate for minimal government intervention in personal and economic affairs, emphasizing individual liberty and free markets.

Individual Rights

The basic entitlements and freedoms that belong to every person, typically upheld by law and societal norms, including rights to privacy, speech, and equal treatment.