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AP® Macroeconomics

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Costs of Protectionism

APMACR-L16MLU

Which of the following is an indirect, rather than direct, cost of protecting domestic markets?

A

A government must spend resources to administer and enforce protective tariffs.

B

A government must spend resources to enforce quotas to limit the importation amount of certain goods.

C

Voluntary export restrictions diminish.

D

Government involvement in the economy decreases.

E

Certain domestic goods that rely on foreign inputs increase in price as well.