According to most economists, which of the following is a valid reason for protecting an industry?
A) Protection keeps richer nations from exploiting the workers of poorer countries.
B) The industry is unable to compete with low- wage foreign competitors.
C) Protection penalises lax environmental standards.
D) None of the above reasons is a valid reason for protection.

Question

Quizplus · Accepted Answer

Most economists argue that protectionism often harms the economy by reducing competition, leading to inefficiency and higher prices for consumers. The reasons listed (A, B, C) are generally viewed as political or ethical arguments rather than economic justifications for protectionism.

According to Most Economists, Which of the Following Is a Valid