How Do High Tariffs and Other Restraints on International Trade

Multiple Choice

How do high tariffs and other restraints on international trade affect the prosperity of a nation?

A) They increase domestic employment and thereby promote the growth of real GDP.
B) They prevent the nation from fully realizing potential gains from specialization,exchange,and competition,thereby reducing economic growth.
C) They tend to reduce rent-seeking and lobbying by producers and thereby promote economic growth.
D) Both a and c are correct.