Suppose a car is completely produced and assembled in Germany and is sold to the United States.In this example,if the United States restricts the purchase of the car from Germany,then the country whose overall welfare would be reduced by this policy would be
A) the United States.
B) Germany.
C) neither Germany nor the United States.
D) both Germany and the United States.

Question

Quizplus · Accepted Answer

Restricting imports from Germany would harm both countries. The United States consumers would face higher prices and fewer choices, reducing consumer welfare. Germany would lose a market for its cars, reducing producer welfare and potentially leading to job losses in the automotive sector.

Suppose a Car Is Completely Produced and Assembled in Germany