Trade restrictions are often motivated by a desire to save domestic jobs threatened by competition from imports.Which of the following counter-arguments is made by economists who oppose trade restrictions?
A)Statistics show that trade restrictions actually do not save jobs.
B)Consumers pay a high cost for jobs saved through trade restrictions.
C)Trade restrictions have a limited impact because most Americans prefer domestic goods over imports.
D)Trade restrictions benefit consumers in the short run but not in the long run.

Question

Quizplus · Accepted Answer

Economists who oppose trade restrictions argue that while these restrictions may save some domestic jobs, consumers end up paying a higher cost for the goods they purchase because of higher prices resulting from the restrictions. This can lead to reduced consumer spending and eventually, job losses in other sectors. Therefore, the cost of preserving a few jobs through trade restrictions is not worth the overall economic cost to society.

Trade Restrictions Are Often Motivated by a Desire to Save