(Choose 1 answer)
(16017) It is argued that special interest groups are likely to take over and promote protectionist policies,which may lead to a decrease in national economic welfare. This argument leads to
A. a presumption that free trade is generally a second-best policy, to be avoided if feasible alternatives are available.
available.
B. a presumption that free trade is generally a second-best policy, to be avoided if feasible alternatives are
C. a presumption that protectionist policies will better serve a country as a whole than free trade policies.
D. a presumption that free trade is the likely equilibrium solution if the government allows special interest groups to dictate its trade policy.
E. a presumption that in practice a free trade policy is likely to be better than alternatives.
the exam.
Exit 33
