Many Economists Criticise Protectionism Because It Causes Losses to Consumers

question 83

Multiple Choice

Many economists criticise 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:

McClelland's Learned Needs

A theory that suggests that human needs for achievement, affiliation, and power are acquired through life experiences.

Achievement Needs

An individual's need for achievement and success, often driving their motivation and behavior in professional and personal contexts.

Affiliation Needs

The human desire to belong to groups or to be associated with others, often for support or shared identity.

Power Needs

Power needs refer to the psychological need some individuals feel to control or influence others.