One Reason Consumers Don't Lobby to Have Tariffs and Quotas

question 54

Multiple Choice

One reason consumers don't lobby to have tariffs and quotas removed is that:

• A) they often don't have the incentive to organize politically.
• B) government officials believe that corporations are more important to the economy.
• C) tariffs and quotas impose no cost on consumers.
• D) they are willing to pay the higher price in support of domestic businesses.

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Definitions:

Forward Contract

A personalized agreement between two entities to purchase or sell a specific asset at a predetermined price on a later date.

Thermal Compressors

Devices that use heat energy to compress a gas, often used in heat pump and refrigeration systems.

Spot Rate

The current market price at which a currency can be bought or sold for immediate delivery.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, often used in foreign exchange and interest rate markets.