Most economists believe that tariffs and import quotas usually reduce general economic welfare.?

Question

true or false

Answer 1

Government intervention, through quotas and tariffs, through these means reduces general economic welfare IF certain assumptions about the markets hold.

Markets must be perfectly competitive, with perfect information, Marginal Social Cost = Marginal Private Cost and Marginal Social Benefit = Marginal Private Benefit.

In case where this is not true, the market is not completely free is should not be strictly subject to such thought.

But, if we consider the US and these policies, we generally have goods with which the assumptions hold. So in general, with respect to the US and these policies, they do believe these forms of intervention reduced general economic welfare.