According to empirical observations,the cost of restricting international trade in the U.S.is much greater than the benefits generated from restriction.In the light of the above observation,which of the following statements is true?

Question

Quizplus · Accepted Answer

The statement in the question implies that the costs of restricting international trade outweigh the benefits. Therefore, statement A cannot be true. Option C presents a specific number, but there is no evidence to support it. Option D is incorrect because consumers do not pay lower prices when domestic industries are protected. Finally, statement E is incorrect because protecting domestic industries tends to increase prices for consumers due to a lack of competition. Option B, on the other hand, is supported by economic theory, which states that tariffs increase the price of imported goods, leading to higher prices for domestic consumers.

According to Empirical Observations,the Cost of Restricting International Trade in the U.S.is