For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?
Correct answer: C. one should not be too dependent on foreign suppliers of crucial resources
- A. U.S oil companies and workers deserved higher incomes
- B. U.S oil was of superior quality and merited higher prices
- C. one should not be too dependent on foreign suppliers of crucial resources
- D. The U.S government needed the quota revenue to balance its budget
Explanation
Restrictions on imported oil can be justified on national-security grounds because dependence on foreign suppliers may create risks during shortages or international conflicts. Higher incomes for domestic oil firms are a protectionist benefit, not the main strategic justification.
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