Trade restrictions, such as tariffs and quotas, limit competition and increase the prices of imported goods. This reduces gains from trade for the country as a whole as consumers pay higher prices for goods and services. It also limits the variety of goods available, leading to reduced consumer choice and decreased living standards.

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Trade Restrictions

Question 96

Multiple Choice

Trade restrictions

A) Reduce the gains from trade for the country as a whole.
B) Increase the gains from trade for poor countries.
C) Reduce the number of hours employees must work.

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