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

Meghan Buchanan

12 April, 15:54

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.

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Answers (1)

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Phoebe Ryan · 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.