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It Is Argued That Special Interest Groups Are Likely to Take

Question 8

Multiple Choice

It is argued that special interest groups are likely to take over and promote protectionist policies, which may lead to a decrease in national economic welfare. This argument leads to


A) a presumption that in practice a free trade policy is likely to be better than alternatives.
B) a presumption that trade policy should be shifted to Non-Governmental Organizations, so as to limit taxpayer burden.
C) a presumption that free trade is generally a second-best policy, to be avoided if feasible alternatives are available.
D) a presumption that free trade is the likely equilibrium solution if the government allows special interest groups to dictate its trade policy.
E) a presumption that protectionist policies will better serve a country as a whole than free trade policies.

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