Trade restrictions occur because the benefits of protection to the affected industry and its employees are _____, and costs to consumers are _____.

Question

Quizplus · Accepted Answer

Trade restrictions, such as tariffs and quotas, often benefit a specific industry by protecting it from foreign competition, making these benefits visible and concentrated. However, the costs, such as higher prices for consumers, are spread out across a large number of individuals, making them diffused and individually small.

Trade Restrictions Occur Because the Benefits of Protection to the Affected