The Ricardian model of international trade demonstrates that trade can be mutually beneficial.Why,then,do governments restrict imports of some goods?
A)Import restrictions are the result of trade wars between hostile countries.
B)The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial.
C)Restrictions on imports are intended to benefit domestic consumers.
D)Trade can have substantial effects on a country's distribution of income.
E)Imports are only restricted when foreign- made goods do not meet domestic standards of quality.

Question

Quizplus · Accepted Answer

Trade can affect the distribution of income within a country, leading to some groups losing out, which can prompt governments to impose import restrictions to protect these groups.

The Ricardian Model of International Trade Demonstrates That Trade Can