While restricting imports may protect jobs in the protected industry, it also leads to a reduction in U.S. output and income. This reduction can result in a decrease in the country's overall economic welfare. Therefore, although there may be short-term benefits, the long-term effects of import restrictions are not favorable for the country as a whole.

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Restricting Imports

Question 117

Multiple Choice

Restricting imports

A) can protect United States jobs in the protected industry, which increases economic welfare of the country as a whole.
B) can protect United States final goods and services in the protected industry and makes consumers better off.
C) can protect United States final goods and services in the protected industry and increase economic welfare of the country as a whole.
D) can protect United States jobs in the protected industry but will also lead to reductions in U.S. output and income.

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