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It Is Argued That More Goods and Lower-Priced Goods Are

Question 78

Multiple Choice

It is argued that more goods and lower-priced goods are available in markets when there is free trade than when there is restricted trade. This could be explained by the fact that:


A) free trade may lead to increased competition among sellers, which has the effect of increasing output and lowering prices.
B) tariffs and quotas, which have the effect of raising prices and limiting availabilities of goods are found in restricted trade, but not in free trade, environments.
C) both of the above.
D) none of the above.

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