Asked by Cheska Lopez on May 31, 2024
Verified
Studies show that
A) it is impossible to estimate the benefits of trade barriers.
B) costs and benefits of trade barriers are about equal.
C) benefits of trade barriers exceed their costs in developing nations.
D) costs of trade barriers exceed their benefits, creating an efficiency loss for society.
Trade Barriers
Government-imposed regulations such as tariffs, quotas, and embargoes that restrict the free flow of goods and services between countries.
Efficiency Loss
Losses in economic efficiency that occur when equilibrium for a good or a service is not achieved or is not achievable.
- Assess the economic implications of trade restrictions, including their impact on domestic employment and international relations.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
D
Explanation :
Trade barriers, such as tariffs and quotas, generally lead to inefficiencies in the market by distorting prices and limiting competition. This results in a net loss for society, as resources are not used in the most efficient manner.
Learning Objectives
- Assess the economic implications of trade restrictions, including their impact on domestic employment and international relations.