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Which of the Following Is Not a Disadvantage of Government

Question 85

Multiple Choice

Which of the following is not a disadvantage of government intervention in trade policy?


A) Intervention can be self-defeating, since it tends to protect the inefficient rather than help firms become efficient global competitors
B) Intervention in the form of tariffs, quotas, and subsidies can help firms and industries establish a competitive advantage in the world economy
C) Intervention is unlikely to be well executed, since it may invite retaliation and trigger a trade war
D) Intervention is dangerous, since it may invite retaliation and trigger a trade war
E) None of these answers is correct

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