Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic producers of the restricted products at the expense of domestic consumers." This statement:A. Contains one error; the trade restraints do not increase the scarcity of foreign-produced goods. B. Contains one error; domestic producers gain at the expense of foreign producers rather than domestic consumers. C. Contains two errors; trade restraints do not increase the domestic scarcity of product and neither do they harm domestic consumers. D. Is essentially correct.

Question

Business

Julissa Werner

27 October, 02:02

Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic producers of the restricted products at the expense of domestic consumers." This statement:A. Contains one error; the trade restraints do not increase the scarcity of foreign-produced goods. B. Contains one error; domestic producers gain at the expense of foreign producers rather than domestic consumers. C. Contains two errors; trade restraints do not increase the domestic scarcity of product and neither do they harm domestic consumers. D. Is essentially correct.

+2

Answers (1)

Know the Answer?

Lawson Evans · Answer 1

Answer: Option B

Explanation:

A trade restriction is an artificial restriction on the trade of goods and/or services between two or more countries.

The right option is B because the statement contains one error; domestic producers gain at the expense of foreign producers rather than domestic consumers.