Trade restrictions that limit the sale of low-price foreign goods in the U.S. market
A) increase the real income of Americans.
B) benefit domestic producers in the protected industries at the expense of consumers and domestic producers in export industries.
C) help channel more of our resources into producing goods for which we are a low-cost producer.
D) reduce unemployment and increase the productivity of American workers.

Question

Quizplus · Accepted Answer

Trade restrictions benefit domestic producers in protected industries by reducing competition from foreign goods, but they do so at the expense of consumers who face higher prices and domestic producers in export industries who may face retaliatory measures.

Trade Restrictions That Limit the Sale of Low-Price Foreign Goods