The problem with the protection-as-a-bargaining-chip argument for trade restrictions is
A)if it works, consumer surplus will decline.
B)if it works, producer surplus falls.
C)if it fails, the country faces a choice between two bad options.
D)if it fails, total surplus will increase.

Question

Quizplus · Accepted Answer

If the protection-as-a-bargaining-chip argument fails, the country is left with the choice of either continuing the trade restrictions, which can harm its economy by reducing efficiency and increasing prices for consumers, or removing the restrictions without having gained any concessions from other countries, which might also be seen as a loss.

The Problem with the Protection-As-A-Bargaining-Chip Argument for Trade Restrictions Is