Obstacles that restrict trade, either domestic or international, will
A) reduce output, income, and the general living standard of the populace.
B) help people achieve higher income levels.
C) help promote high rates of economic growth.
D) encourage domestic business firms to expand output so they can achieve larger gains from the adoption of mass production techniques.

Question

Quizplus · Accepted Answer

Obstacles that restrict trade, such as tariffs or quotas, limit the ability of businesses to engage in international trade, reducing their potential market and limiting their ability to benefit from economies of scale. This reduction in trade will lead to a decrease in overall output and income, and ultimately result in a lower standard of living for the people.

Obstacles That Restrict Trade, Either Domestic or International, Will