Question

both import quotas and vers benefit ____ by limiting import competition, but they result in higher prices, which hurts ____. a. domestic producers; consumers b. balance of trade; consumers c. consumers; foreign producers d. foreign producers; governments e. governments; consumers

Explanation:

Import quotas and voluntary export restraints (VERs) limit import competition, which helps domestic producers as they face less foreign - produced goods competition. However, these measures lead to higher prices in the domestic market, which harms consumers who have to pay more for products.

Answer:

A. domestic producers; consumers