Identify the True Statement About Tariffs and Trade Restrictions

Multiple Choice

Identify the true statement about tariffs and trade restrictions.

A) Countries are not allowed to levy tariffs for political reasons.
B) Protective tariffs allow more expensive domestic goods to compete with foreign ones.
C) Critics of protective tariffs argue that their use inhibits free trade and competition.
D) Countries cannot allow citizens traveling abroad to bring home merchandise without paying an import tariff.
E) Quotas cannot be established by voluntary agreements.