Some questions for you to study while preparing for the midterm of 6/11/2023

Fill in the correct option for the following multiple choice questions. There are also 2problems on page 5.

1) The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?

A) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial.

B) Import restrictions are the result of trade wars between hostile countries.

C) Trade can have substantial effects on a country's distribution of income.

D) Imports are only restricted when foreign-made goods do not meet domestic standards of quality.

E) Restrictions on imports are intended to benefit domestic consumers.

Answer: