5. Trade policies Tariffs and quotas can potentially benefit domestic producers of protected products. Which of the following arguments do economists make? O Nontariff barriers are more economically efficient. O This has almost no effect on foreign consumers and foreign producers. The societal gains from free trade are greater as a result of specialization. The gains to domestic consumers are even higher because of lower prices.
5. Trade policies Tariffs and quotas can potentially benefit domestic producers of protected products. Which of the following arguments do economists make? O Nontariff barriers are more economically efficient. O This has almost no effect on foreign consumers and foreign producers. The societal gains from free trade are greater as a result of specialization. The gains to domestic consumers are even higher because of lower prices.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:5. Trade policies
Tariffs and quotas can potentially benefit domestic producers of protected products. Which of the following arguments do economists make?
O Nontariff barriers are more economically efficient.
O This has almost no effect on foreign consumers and foreign producers.
The societal gains from free trade are greater as a result of specialization.
The gains to domestic consumers are even higher because of lower prices.
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