"Trade restrictions such as tariffs and quotas are like a blockade that a nation imposes on its own people." Is this statement true?
A) Yes, both the trade restrictions and a blockade will reduce the gains from specialization and trade.
B) No, a blockade will help the residents of a nation achieve a higher income level; trade restrictions will not.
C) No, trade restrictions will help the residents of a nation achieve a higher income level; a blockade will not.
D) Uncertain, the statement is true if the gains of the residents exceed those of foreigners; otherwise it is false.
A) Yes, both the trade restrictions and a blockade will reduce the gains from specialization and trade.
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