Which of the Following Statements Is True of the Impact

question 37

Multiple Choice

Which of the following statements is true of the impact of trade restrictions on domestic employment?

• A)Domestic firms will produce the goods that otherwise would have been produced abroad,thus employing foreign workers instead of domestic workers.
• B)Beside the protected industry,other industries will also benefit in terms of employment.
• C)Domestic consumers will be required to pay lower prices for the output of the protected industry.
• D)Restrictions imposed on trade simply redistribute jobs by creating employment in the protected industry and reducing employment elsewhere.
• E)If other countries retaliate by restricting the entry of the domestic exports,the output of domestic firms that produce for export will rise.

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Definitions:

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