Lobbying for or against trade restrictions Trade restrictions affect the overall

Question

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_____, because they_____the domestic price of a good. True or False: Consumers find it difficult to exert the political influence needed to remove trade restrictions, because the costs to consumers are very small and widely dispersed, which makes it difficult for consumers to organize. True False

Explanation / Answer

producers

consumers

increase

A quota is a government-imposed trade restriction that limits the number, or in certain cases the value, of goods and services that can be imported or exported during a particular time period. Quotas are used in international trade to help regulate the volume of trade between countries.

True

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