Panama is considering instituting trade restrictions in order to balance its payments,protect new businesses,and protect domestic jobs.What may be some of the reasons it would not want to institute trade restrictions?
A) Higher prices for consumers,restrictions of consumers' choices,misallocation of international resources,and loss of jobs.
B) Lower prices for consumers,more consumer choices,proper allocation of international resources,and increase in employment.
C) Sluggish market improvements,high retail prices,and lack of international resources.
D) Loss of jobs,lack of national innovation,and high interest rates.

Question

​Panama is considering instituting trade restrictions in order to balance its payments,protect new businesses,and protect domestic jobs.What may be some of the reasons it would not want to institute trade restrictions?
A) ​Higher prices for consumers,restrictions of consumers' choices,misallocation of international resources,and loss of jobs.
B) ​Lower prices for consumers,more consumer choices,proper allocation of international resources,and increase in employment.
C) ​Sluggish market improvements,high retail prices,and lack of international resources.
D) ​Loss of jobs,lack of national innovation,and high interest rates.

Quizplus · Accepted Answer

Instituting trade restrictions can often lead to higher prices for consumers due to limited competition and restricted access to cheaper international goods. This may also lead to a misallocation of resources by promoting the production of inefficient domestic goods instead of utilizing more efficient international resources. Additionally, trade restrictions may result in the loss of jobs in industries that rely on exports or imports.

​Panama Is Considering Instituting Trade Restrictions in Order to Balance

Panama Is Considering Instituting Trade Restrictions in Order to Balance