Countries That Restrict Foreign Trade Are Likely to

question 25

Multiple Choice

Countries that restrict foreign trade are likely to

• A)forgo the additional surplus that trade allows,but will probably enjoy economies of scale.
• B)forgo the additional surplus that trade allows,but will be compensated by a higher rate of technological change.
• C)forgo the additional surplus that trade allows,but will have a lower rate of unemployment.
• D)have more firms with domestic market power.