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:

Cognitive Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Cognitive Dissonance

A psychological concept involving the discomfort experienced when holding conflicting beliefs or attitudes, leading to an alteration in one or more of these beliefs to reduce the discomfort.

Counterattitudinal Behaviour

Engaging in behaviors that are contrary to one's personal beliefs or attitudes.

Persuasive Communications

Messages designed to influence the attitudes or behaviors of others through the use of argument, information, or appeals.