It has been suggested that in order to protect U.S. jobs we need to restrict foreign competition by restricting imports.
A) This is a sound economic statement since the U.S. will still export protecting U.S. jobs.
B) This is a sound economic statement since U.S. firms will have to increase output to make up for the lack of imports leading to increase employment in the U.S.
C) This is not a sound economic statement since employment in the U.S. does not depend on imports and exports.
D) This is not a sound economic statement since import restrictions lead to a reduction in employment in the export industries of the U.S.

Question

Quizplus · Accepted Answer

Restricting imports would likely lead to retaliation from foreign countries, resulting in reduced demand for U.S. exports and a reduction in employment in U.S. export industries. Additionally, restricting imports would raise prices for consumers and reduce their purchasing power, leading to a reduction in overall economic activity and employment. Therefore, restricting imports is generally not a sound economic policy for protecting U.S. jobs.

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