Trade Restrictions Are Often Motivated by a Desire to Save

question 143

Multiple Choice

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.

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Tax on Buyers

A financial charge imposed directly on purchasers, affecting the demand side by potentially reducing the quantity of goods or services bought.

Sellers Receive Less

A situation where suppliers earn less revenue than expected due to market factors such as decreased demand or increased competition.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied by producers.