All but one of the following statements is used to justify protectionism.Which statement is not used to justify protectionism?
A)Free trade leads to higher prices for imported goods.
B)Free trade reduces employment by driving domestic firms out of business.
C)A country should not rely on other countries for goods that are critical to its national defense.
D)Trade restrictions are necessary to protect new firms until they can gain experience and become more productive.

Question

Quizplus · Accepted Answer

The statement that free trade leads to higher prices for imported goods is actually used to justify protectionism, as protectionists argue that domestic industries should be protected from foreign competition in order to maintain lower prices for consumers. The other three statements are commonly used to justify protectionism. B argues that free trade leads to job losses as companies move production overseas, C argues that countries should not be reliant on other countries for critical goods such as military equipment, and D argues that protectionism is necessary to support new and emerging industries until they become more productive.

All but One of the Following Statements Is Used to Justify