Asked by Kayla Harrington on Jul 03, 2024
Verified
In order of preference,economists would choose
A) quotas,tariffs,free trade.
B) free trade,tariffs,quotas.
C) tariffs,quotas,free trade.
D) free trade,quotas,tariffs.
E) tariffs,free trade,quotas.
Free Trade
The absence of tariffs, quotas, or other government-imposed barriers to international trade, allowing goods to flow freely between countries.
Tariffs
Taxes imposed by a government on imported goods, typically used to protect domestic industries from foreign competition.
Quotas
Restrictions set by governments on the quantity or value of goods that can be imported or exported, used to control trade balances and protect domestic industries.
- Investigate the rationale behind economists' preference for free trade compared to protectionist strategies.
Verified Answer
DR
dinesh reddyJul 10, 2024
Final Answer :
B
Explanation :
Economists generally advocate for free trade as it allows for efficient allocation of resources, lower prices for consumers, and encourages competition leading to innovation. Tariffs and quotas increase the cost of goods and services for consumers and can lead to retaliatory measures from trading partners, ultimately hurting both economies. Therefore, the preferred order of economic policies would be free trade, followed by tariffs as a last resort, and quotas as a very last resort.
Learning Objectives
- Investigate the rationale behind economists' preference for free trade compared to protectionist strategies.