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.

---

Definitions:

Hypothalamus

A region of the brain responsible for producing hormones that regulate essential bodily functions, including temperature, hunger, and sleep.

Thalamus

The thalamus is a structure within the brain that serves as a relay station, processing and transmitting information from the senses to the appropriate areas of the brain.

Amygdala

An almond-shaped part of the brain involved in processing emotions, fear responses, and memory of emotional events.

Limbic System

A complex system of nerves and networks in the brain, controlling basic emotions and drives.