If protective import-restricting quota are imposed by a country, all of the following groups benefit EXCEPT
A) domestic producers in the affected industry.
B) domestic consumers in the affected industry.
C) employees of domestic producers in the affected industry.
D) importers that are able to obtain the rights to sell imported items in the affected industry.

Question

Quizplus · Accepted Answer

Protective import-restricting quotas benefit domestic producers in the affected industry by reducing competition, as well as employees of those producers who may benefit from increased job security. Importers who are able to obtain quotas can also benefit. However, domestic consumers in the affected industry suffer because they face higher prices and a reduced variety of products to choose from.

If Protective Import-Restricting Quota Are Imposed by a Country, All