Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic producers of the restricted products at the expense of domestic consumers. This statement:
A) is essentially correct.
B) contains two errors; trade restraints do not increase the domestic scarcity of product and neither do they harm domestic consumers.
C) contains one error; domestic producers gain at the expense of foreign producers rather than domestic consumers.
D) contains one error; the trade restraints do not increase the scarcity of foreign produced goods.
Correct Answer:
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