Studies show that

Question

Studies show that

Quizplus · Accepted Answer

According to the concept of deadweight loss or efficiency loss, when costs of a policy exceed its benefits, there is a net loss to society. Therefore, option D is the best choice as it suggests that the costs of trade barriers exceed their benefits, indicating an inefficiency in the policy. The other options are incorrect: A because there are myriad methods to estimate benefits and costs of trade barriers; B as trade barriers undoubtedly increase the costs of the traded goods and tend to reduce the quantity of trade, therefore, result in a net loss to society; and C as it is unlikely that developing nations benefit from trade barriers since they rely on trade to develop their economies.

Studies Show That