Question

Consumers faced limited choices under this policy primarily because:

Options

• Consumer incomes were excessively high

• Exporters flooded the domestic market with goods

• Imports were restricted

• Domestic producers offered too much variety

Answer 1

Since imports were restricted through tariffs and quotas, the variety of goods available in the market shrank. As a result, consumers faced limited choices, which became one of the key criticisms of the protectionist policy.