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

Question

Quizplus · Accepted Answer

Trade can harm certain domestic industries or workers, leading governments to impose restrictions to protect these segments.

The Ricardian Model of International Trade Demonstrates That Trade Can