There are winners and losers as a result of protectionist policies, but economic theory can show that the gains from the winners are larger than the losses of the losers.

Question

Quizplus · Accepted Answer

Economic theory generally shows that the losses from protectionist policies (such as tariffs and quotas) often outweigh the gains. While some domestic industries and workers may benefit from protection against foreign competition, the overall economy tends to suffer from higher prices and reduced efficiency, leading to a net loss in welfare.

There Are Winners and Losers as a Result of Protectionist