Many Economists Criticize Protectionism Because It Causes Losses to Consumers

question 101

Multiple Choice

Many economists criticize protectionism because it causes losses to consumers and eliminates jobs in domestic industries that use protected products.Why, then, do some people support protectionism?

• A)The criticisms of economists are based on theory. In fact, protectionism increases consumer and producer surplus as well as employment.
• B)Supporters of protectionism in high-income countries believe that wages will fall as a result of competition with firms from developing countries.
• C)Supporters of protectionism believe free trade will cause their countries to lose their comparative advantage.
• D)Supporters of protectionism believe that free trade will lead to inflation.

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Definitions:

Laid Off

The termination of employment due to the employer's decision, often because of budget cuts or company downsizing, not because of the employee's personal performance.

Financial Struggle

The challenge of managing one's finances, often due to insufficient income, debt, or unexpected expenses.

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Individuals who lack permanent housing but aren't visible in public spaces, often staying with friends or family temporarily or living in cars.

Single Mother

A woman raising her child(ren) without the involvement of the child's father or another partner in the parenting role.