Trade restrictions tend to make domestic products
A) cheaper because they do not have to compete with foreign goods.
B) cheaper because they do have to compete with foreign goods.
C) more expensive because they have to compete with foreign goods.
D) more expensive because they do not have to compete with foreign goods.

Question

Quizplus · Accepted Answer

Trade restrictions, such as tariffs and quotas, reduce competition from foreign goods. This lack of competition can lead to higher prices for domestic products, as domestic producers are not pressured to lower prices or improve quality to compete with foreign goods.

Trade Restrictions Tend to Make Domestic Products