Which of the following is not employed as an argument in support of trade restrictions?
A) Free trade harms the national security if vital products are imported.
B) Free trade is harmful to importing countries if foreign countries subsidize their exporting industries.
C) Free trade destroys domestic jobs.
D) Free trade harms both domestic producers and domestic consumers and therefore reduces total surplus.
E) Free trade harms infant industries in an importing country.

Question

Quizplus · Accepted Answer

Trade restrictions are typically argued to protect national security, counteract foreign subsidies, preserve domestic jobs, and support infant industries. However, the argument that free trade reduces total surplus by harming both producers and consumers is not commonly used, as free trade is generally seen to increase total surplus by allowing for more efficient allocation of resources.

Which of the Following Is Not Employed as an Argument