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.
Correct Answer:
Verified
Q3: Q4: Q5: Q6: The optimum tariff is most likely to Q7: The opportunity to exploit economies of scale Q9: Judging by the ongoing changes in tariff Q10: The difficulty of ascertaining the right second-best Q11: Trade theory suggests that Japan would gain Q12: The United States appears at times to Q13: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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