Which of the following probably best explains why trade restrictions are imposed even if the costs to consumers are greater than the benefits to protected industries?
a. Indifference on the government's part to the interests of domestic workers
b. A desire to make other countries suffer
c. Government's desire to earn high revenues
d. Successful lobbying by employers and workers in protected industries
e. Government's preference to safeguard the interest of the producers at the expense of the consumers
d
You might also like to view...
A black market may occur when
A) the government imposes a price floor below the market clearing price. B) the government imposes a price ceiling below the market clearing price. C) the government imposes a price ceiling above the market clearing price. D) the government does not impose either a price ceiling or a price floor.
In the long run, any firm may enter or leave a perfectly competitive market
a. True b. False Indicate whether the statement is true or false
In the short run, crowding out could be avoided if foreigners:
A. bought the U.S. debt at the existing interest rate. B. bought the U.S. debt at a higher interest rate. C. sold the U.S. debt at the existing interest rate. D. sold the U.S. debt at a higher interest rate.
Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price and buys up any surplus?
A. taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place B. producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues C. the government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program D. consumers, who purchase more units of the product than they did before the price support program was implemented