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Econia Implements Strict Laws That Require Companies to Use Production

Question 67

Multiple Choice

Econia implements strict laws that require companies to use production methods that do not harm the environment, forcing the companies to change to more expensive production techniques to comply with the law. The companies then ask the government to impose trade restrictions against imports produced in countries that do not have similar environmental protection laws. Which of these is NOT a rationale for such trade restrictions?


A) The trade restrictions will raise the cost of imported goods for Econia's consumers, eliminating the bias toward foreign production that the law created.
B) The trade restrictions will eliminate the bias against Econia's products abroad that had been created by the law by effectively raising the price of foreign-produced goods in world markets.
C) The trade restrictions may save Econian jobs in the industries whose production methods were impacted by the environmental protection law.
D) The trade restriction will help Econian producers feel that the environmental protection law does not put them at a disadvantage against foreign producers in Econia's product markets.

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