Using trade restrictions to protect special interests such as the U.S. auto industry
A) results in lower prices for U.S. auto consumers.
B) raises the prices that U.S. consumers must pay for autos.
C) is a very cost-efficient way of dealing with trade problems.
D) is the best long-term solution for threatened U.S. jobs.

Question

Quizplus · Accepted Answer

Trade restrictions such as tariffs or quotas raise the prices that U.S. consumers must pay for autos by limiting competition from foreign auto producers. This protection may benefit the domestic auto industry and its workers, but it comes at the expense of higher prices for consumers. Additionally, protecting special interests through trade restrictions usually results in retaliatory measures from other countries, which can harm other sectors of the economy and lead to an overall decline in trade. Thus, while trade restrictions may provide short-term benefits to specific industries, they are not the best solution for addressing trade problems in the long run.

Using Trade Restrictions to Protect Special Interests Such as the U.S