Asked by Hassaan Haider on Apr 25, 2024
Which of the following statements is true about the alleged benefits and adverse effects of trade barriers?
A) The alleged benefits like "saved jobs" are limited to a narrow sector of the economy and clearly seen by the general public, while the adverse effects tend to be obscure and dispersed.
B) The general public does not have much interest in trade and trade barriers because their effects are very small.
C) The alleged benefits of trade barriers tend to be spread over the whole economy, while their adverse effects are narrow and concentrated on a small sector.
D) The U.S. does not really have any significant trade barriers. That's why there is not much debate about them.
Trade Barriers
Measures imposed by governments to regulate or restrict international trade, including tariffs, quotas, embargoes, and standards.
Adverse Effects
Negative outcomes or damages that result from an action or policy.
Alleged Benefits
Claimed advantages or positive outcomes that may not have been fully verified or proven.
- Familiarize yourself with the role of tariffs, quotas, and non-tariff barriers in the context of global trade.
- Understand the effect of trade barriers on prices and quantities in the domestic market.
Learning Objectives
- Familiarize yourself with the role of tariffs, quotas, and non-tariff barriers in the context of global trade.
- Understand the effect of trade barriers on prices and quantities in the domestic market.