QUESTION 19 1 pointsSave Answer Which of the following is a disadvantage of trad

Question

QUESTION 19 1 pointsSave Answer Which of the following is a disadvantage of trade restrictions? O a. They prevent inefficient firms from producing. O b.They prevent competition from taking place. O c. They allow companies to achieve economies of scale O d.They allow firms to exercise a comparative advantage. QUESTION 20 What is a trade deficit? O a.the amount by which a country's exports exceed its imports O b.the amount by which government spending exceeds tax revenue O c. the amount by which a country's imports exceed its exports O d.the amount by which tax revenue exceeds government spending 1 pointsSave Answer

Explanation / Answer

The restrictions on trade prevent the competition. The absence of competitive forces lead to lesser number of choices available for the consumers. The lack of competition leads to a relatively higher price and lower quality.

So the correct option is B.

Trade deficit is the difference between Imports and exports. The amount by which imports exceeds the imports of an economy is known as trade deficit. The deficit is always termed when the imports of an economy exceeds the exports.

So the correct option is C.

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