Concerning a government's trade policy, all the following generally apply except ?
Correct answer: B. because domestic consumers outnumber domestic producer's policy markers usually enact Free-trade policies to satisfy the consumer majority:
- A. economic downturn and recession generally result in greater protectionism
- B. because domestic consumers outnumber domestic producer's policy markers usually enact Free-trade policies to satisfy the consumer majority:
- C. When domestic exporting companies are organized, policy tends to favor freer trade
- D. Policy tends to favor freer trade in countries whose imports are inputs into critical industries
Explanation
The claim in option b is the exception because consumers are often less organized politically than protected producers, so producer groups can secure protection despite consumers being more numerous. Recessions, organized exporters, and critical imported inputs can all influence policy toward the stated outcomes.
Last updated
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,462 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
Related questions
1. The most widely traded currency in the foreign exchange market is the ?
85% of the world's population lives in developing countries and receives about _____ of the world's income?
A 44-nation survey regrading religions found that_________________?
A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?
A capital account surplus might be expected to cause a current account deficit because the associated ?