Question

Trade barriers create costs that are paid ultimately by the

A. government erecting the barrier.
B. consumer.
C. country exporting the goods.
D. exporter.

Answer 1

Trade barriers create costs that are ultimately paid by the consumer. When a country enacts protectionism through trade barriers, it raises the price of the protected goods in the domestic market, causing domestic consumers to pay more.

Step-by-step explanation:

Trade barriers create costs that are ultimately paid by the consumer. When a country enacts protectionism through trade barriers, such as tariffs, import quotas, and nontariff barriers, it raises the price of the protected goods in the domestic market, causing domestic consumers to pay more. This benefits domestic producers of the protected goods, as they earn more.