Border Effects Can Result From

question 147

Multiple Choice

Border effects can result from:

• A) trade.
• B) tariffs.
• C) monopolistic competition.
• D) imperfect competition.

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Definitions:

Paradox Of Voting

The situation where individual rational choice leads to a situation where collective rational outcomes are not achieved, often resulting in the non-optimal allocation of resources.

Government Failure

Occurs when government intervention in the economy leads to an inefficient allocation of resources or fails to achieve the intended outcomes.

Public Choice Theory

A theory in economics and political science that studies how public sector actions and policies are influenced by the self-interest of individuals, especially politicians and bureaucrats, as opposed to the public good.