Who benefit(s) from protectionism?
a. Consumers
b. Domestic producers
c. No one
d. Both consumers and domestic producers.
Question 2
In the opening of free trade, if world prices of a good are less than domestic prices of that same good,
a. domestic consumers will experience a loss of surplus.
b. domestic prices will drop to the world price level.
c. all domestic producers of that good will try to find another market because they can't compete with foreign producers.
d. domestic producers will increase the quantity supplied in order to crowd out the foreign-produced good.
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