Which of the following is NOT a rationale for tariffs?
A) They improve the terms of trade for small and large nations.
B) They protect jobs and reduce unemployment.
C) They promote growth and development of young industries.
D) They promote a level playing field in terms of trade.

Question

Quizplus · Accepted Answer

None of the rationales listed suggest that tariffs improve the terms of trade for small and large nations. In fact, tariffs can often lead to retaliation from trading partners, leading to a decrease in international trade and potentially harming economic growth.

Which of the Following Is NOT a Rationale for Tariffs