Q17 A primary reason for a country to adopt restrictions on international trade is that restrictions will most likely:

A. improve short-run economic efficiency.

B. Benefit consumers at the expense of producers,

C. Impose high casts on a concentrated group of people.

D. Provide concentrated benefits to a small getup of people.

答案和详解如下：

Q17   D   Modular Level I, Vol-2, pp-475A84   , Study \ Session 6-29-c

Trade restrictions tend to increase allocative inefficiency. Example 1: Quotas reduce the supply and increases the price. Example 2: Suppose a country bans import of cheaper foreign goads. This leads to an increase in domestic prices. The end result is economies produce less in areas where they have a comparative advantage and the government in effect subsidizes a relatively small group (domestic producers).

look

a

adopt?