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When a Country Establishes Trade Restrictions, Domestic Producers of Goods

Question 151

Multiple Choice

When a country establishes trade restrictions, domestic producers of goods that compete with imported goods


A) always lose in the short run
B) always gain in the long run
C) may lose in the long run if protection stifles innovation and leaves the industry vulnerable
D) may gain in the short run because wages will fall in that industry
E) usually lobby against such restrictions

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