One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify.Which of the following is a second reason?
A)The costs that tariffs and quotas impose on consumers are large in total but relatively small per person.
B)People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote.
C)Firms that benefit from trade barriers have more money to lobby government officials to support the barriers than do firms that are harmed by trade barriers.
D)The benefits from free trade are less than the costs.

Question

Quizplus · Accepted Answer

The costs of tariffs and quotas are dispersed among many consumers, making them less noticeable and less likely to provoke opposition, while the benefits are concentrated among a few firms, who have a strong incentive to lobby for these barriers.

One Reason for the Success That Firms Have in Getting