It can be argued that tariffs and other restrictions of trade:
A)lower the standard of living both in the initiator countries and those countries against which they are directed.
B)usually lower the standard of living only in the countries that initiate them.
C)usually lower the standard of living of only the countries against which they are directed.
D)cause little welfare loss provided there is full employment both before and after the tariff.
E)none of the above.

Question

Quizplus · Accepted Answer

Tariffs and trade restrictions usually result in higher prices for consumers, decreased competition, and retaliation from trading partners. All of these factors ultimately lead to a lower standard of living for both the country initiating the trade restrictions and the one against which they are directed.

It Can Be Argued That Tariffs and Other Restrictions of Trade