When overall production is taken into account, trade restrictions, such as those enacted by the Smoot-Hawley trade bill,
A) save good paying jobs.
B) neither create nor destroy jobs; they reallocate them.
C) increase employment in the domestic industries that are most productive.
D) reduce imports, without affecting the volume of exports.

Question

Quizplus · Accepted Answer

Trade restrictions like tariffs can lead to a reallocation of jobs rather than creating or destroying them, as they shift resources from one sector to another, often leading to inefficiencies.

When Overall Production Is Taken into Account, Trade Restrictions, Such