Tariffs are more likely to be imposed when:
A)the lobbying efforts of the consumer advocacy groups are much stronger than those of the producers.
B)the average gain per proponent far exceeds the average cost per opponent.
C)the number of people who are hurt by protectionist measures exceeds the number of people who gain from protectionist measures.
D)import-competing producers are unorganized.

Question

Quizplus · Accepted Answer

Tariffs are more likely to be imposed when the average gain per proponent (such as domestic producers who benefit from reduced competition) far exceeds the average cost per opponent (such as consumers who face higher prices). This is because the concentrated benefits to a small group of proponents often lead to stronger lobbying efforts compared to the diffuse costs borne by a larger group of opponents.

Tariffs Are More Likely to Be Imposed When