When a Country Establishes Trade Restrictions, What Happens to the Revenues

question 69

Multiple Choice

When a country establishes trade restrictions, what happens to the revenues of the domestic producers of goods that compete with the imported goods?  

• A) The domestic producers always lose revenue in the short run. 
• B) The domestic producers always gain revenue in the long run. 
• C) The domestic producers may lose revenue in the long run if protection stifles innovation and leaves the industry vulnerable. 
• D) The domestic producers may gain revenue in the short run because wages will fall in that industry.

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Definitions:

Salary Negotiations

The process of discussing and agreeing on the compensation package for a job position between an employer and employee.

Treatment

A specific method or approach used in dealing with or improving a problem or medical condition.

Outcomes

Outcomes are the results or consequences of actions, decisions, or processes, which can be evaluated to determine their effectiveness or impact.

Gender Differences

Refers to the distinctions in characteristics, roles, behaviors, and biological attributes traditionally associated with masculinity and femininity.