economic true or false?
Trade restrictions like tariffs and import quotas usually benefit domestic producers, who are few and well-organized, but harm domestic consumers, who are too numerous to organize.
True or False: It is politically difficult to eliminate trade restrictions like tariffs and import quotas because it is difficult to coordinate support by those who would benefit from unrestricted trade.
- Anonymous1 decade agoFavourite answer
True. Tariffs and quotas cause economic rent. The higher price have to be paid by consumers, and benefits domestic producers.Today, it is subject to WTO. Tariffs and quotas can be used only if it has been proved that it was a dumping by foreign producers.
- Anonymous1 decade ago
False. Everything in first paragraph contradicts the second.
- 1 decade ago
Good Point...And Very TRUE
- Eddy TLv 71 decade ago