Trade restrictions:
A) help to save jobs in the protected industry, which causes these workers to spend more money in other industries, netting increased output and job opportunities throughout the economy.
B) are a very inexpensive way of saving jobs, cheaper than job retraining programs.
C) may save jobs in one industry but at a cost of less job growth in other industries.
D) often have little support by politicians, media, and the public.

Question

Quizplus · Accepted Answer

Trade restrictions may protect jobs in a specific industry, but they come at the cost of decreased job growth in other industries. The overall net effect on the economy is unclear, but it is unlikely that trade restrictions are a cost-effective way of creating jobs. Option A may be true in the short run, but in the long run, protectionism can hurt the economy. Option B is not necessarily true, as trade restrictions can incur costs such as reduced competition and increased prices. Option D is not a universally true statement, as there are instances where trade restrictions may have political, media, or public support.

Trade Restrictions