7. Lobbying for or against trade restrictions Trade restrictions affect the overall welfare of an economy, since they change the price consumers pay for a good and the quantity produced and consumed domestically. Trade restrictions, such as quotas, usually benefit domestic and hurt domestic since they v the domestic price of a good. True or False: Producers find it difficult to exert the political influence needed to establish trade restrictions, because the benefits to producers are very small and widely dispersed, which makes it difficult for producers to organize. O False O True

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter17: International Trade
Section: Chapter Questions
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7. Lobbying for or against trade restrictions
Trade restrictions affect the overall welfare of an economy, sin'ce they change the price consumers pay for a good and the quantity produced and
consumed domestically.
Trade restrictions, such as quotas, usually benefit domestic
▼ and hurt domestic
since they
the
domestic price of a good.
True or False: Producers find it difficult to exert the political influence needed to establish trade restrictions, because the benefits to producers are
very small and widely dispersed, which makes it difficult for producers to organize.
O False
O True
Transcribed Image Text:7. Lobbying for or against trade restrictions Trade restrictions affect the overall welfare of an economy, sin'ce they change the price consumers pay for a good and the quantity produced and consumed domestically. Trade restrictions, such as quotas, usually benefit domestic ▼ and hurt domestic since they the domestic price of a good. True or False: Producers find it difficult to exert the political influence needed to establish trade restrictions, because the benefits to producers are very small and widely dispersed, which makes it difficult for producers to organize. O False O True
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