Asked by Dejanece Thomas on May 19, 2024
Verified
High protective tariffs
A) would be supported by most economists.
B) will become more likely if we do not reduce our trade deficit.
C) have very little support.
D) would definitely solve all our trade problems.
Protective Tariffs
Taxes imposed on imported goods to protect domestic industries from foreign competition by making the imported goods more expensive compared to local products.
Trade Deficit
A situation where a country’s imports exceed its exports during a given time period, leading to a negative balance of trade.
- Analyze the impact of tariffs, quotas, and other trade barriers on international trade and domestic markets.
- Assess the economic foundations for and against the adoption of free trade and protectionism.
Verified Answer
BM
Brock MartinMay 21, 2024
Final Answer :
B
Explanation :
High protective tariffs are generally not supported by most economists as they can lead to retaliatory tariffs by other countries and reduce overall economic efficiency. However, if the trade deficit continues to increase, there may be political pressure to impose protective tariffs as a way to reduce imports and promote domestic production.
Learning Objectives
- Analyze the impact of tariffs, quotas, and other trade barriers on international trade and domestic markets.
- Assess the economic foundations for and against the adoption of free trade and protectionism.