Direct democracy makes tariffs less likely to be voted into law because:
A)the size of the individual losses would be larger than the individual gains from any potential protectionist measure.
B)domestic producers threatened by increased imports will lobby against the trade agreements entered into by the countries.
C)each person does not vote on the basis of his/her direct interest as a winner or loser from protection.
D)the number of people who are hurt by protectionist measures exceeds the number of people who gain from protectionist measures.

Question

Quizplus · Accepted Answer

Direct democracy tends to make tariffs less likely because the broader population often bears the costs of protectionist measures (e.g., higher prices for imported goods), while the benefits are concentrated among a smaller group of domestic producers. Thus, when the entire electorate votes, the interests of the larger group (those who are hurt by protectionist measures) are more likely to prevail.

Direct Democracy Makes Tariffs Less Likely to Be Voted into Law