Author Question: Which of the following probably best explains why trade restrictions are imposed even if the costs ... (Read 114 times)

wenmo · **on:** Jun 30, 2018

Which of the following probably best explains why trade restrictions are imposed even if the costs to consumers are greater than the benefits to protected industries?
a. Indifference on the government's part to the interests of domestic workers
b. A desire to make other countries suffer
c. Successful lobbying by consumers
d. Successful lobbying by employers and workers
e. The government's preference to safeguard the interest of the producers at the expense of the consumers

Question 2

If one nation can produce greater quantities of a good than another nation, it has a(n)
a. comparative advantage in producing that good.
b. absolute advantage in producing that good.
c. absolute advantage, but a comparative disadvantage in producing that good.
d. comparative advantage, but an absolute disadvantage in producing that good.