Question

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.

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.