Question

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

Answer 1

A. if it fails the country faces a choice between two bad options.

Step-by-step explanation:

• It claims as a threat that the trade restriction can help remove a trade restriction is already been imposed by a foreign government and lead to the reduction of its own economic welfare.