Many economists discourage restrictions on trade, emphasizing the costs associated with tariffs and quotas. However, the U. S. government still receives pressure from some to erect trade barriers, and some trade barriers are still in place. Why would policymakers (such as those in Congress) understand the potential benefits from trade yet support trade restrictions?

a. The benefits of trade restrictions are reaped by all industries.

b. It is difficult to identify the number of jobs lost to foreign competition.

c. Although trade restrictions have costs, their net benefits are always positive.

d. The costs of trade restrictions per consumer are small.

e. Foreign competition from free trade does not create new jobs.

e. Foreign competition from free trade does not create new jobs.

Explanation:

Tariffs and customs barriers are the subject of much debate by economists and politicians. On the one hand, these barriers inhibit competition and are bad for consumers and commerce as a whole. On the other hand, the main reason for these tariffs is to protect the domestic industry from foreign competition. If foreign industry is more efficient and there are no import duties, consumers will buy imported products and domestic industry may break down. That would lead to rising unemployment. Thus, policymakers adopt these measures precisely to stimulate the labor market, even knowing that the gains from international trade are greater for society as a whole, which could pay less for products.