Why Do Countries Persist in Using Protective Measures Even Though

question 9

Short Answer

Why do countries persist in using protective measures even though most economists believe that tariffs and quotas yield welfare losses to countries?

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Definitions:

Nonessential Diamonds

Diamonds categorized as luxury items, not required for basic living or survival needs.

Diamond-water Paradox

The contradiction observed in value theory where essential goods like water have low prices, while non-essential goods like diamonds have high prices.

Essential Goods

Products that are necessary for basic living and well-being, often unchanged by changes in income.

Nonessential Goods

Products and services considered as non-critical for survival or basic living standards.