Question
What is the impact of trade restrictions on domestic production?
Domestic production remains the same
It only affects foreign production
It decreases domestic production
It increases domestic production
That is correct.
Domestic production remains the same
It only affects foreign production
It decreases domestic production
It increases domestic production
That is correct.
Answers
GPT-4o mini
Trade restrictions, such as tariffs or import quotas, can impact domestic production by providing protection to local industries from foreign competition. This often leads to an increase in domestic production as local businesses have a larger share of the market without the pressure of competing against cheaper imports.
Therefore, the correct answer is:
**It increases domestic production.**
Therefore, the correct answer is:
**It increases domestic production.**
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