Which statements about who benefits and pays the cost of protectionism are true?
A) Although the global economy is moving toward more free trade, it is mixed with protectionism because international trade policy is driven by domestic politics.
B) Society pays the cost of protectionism through decreased efficiency in the allocation and utilization of the country's resources.
C) Society benefits through the government collecting more taxes though keeping foreign goods out of the country.
D) Consumers pay higher prices, with fewer product choices, to finance business profits and employee wages.
E) Isolationism and protectionism tend to work against each other.

Question

Quizplus · Accepted Answer

A) Protectionism is often a result of domestic political pressures, even as the global trend moves towards free trade.B) Protectionism can lead to inefficiencies in how a country uses its resources, as it may not specialize in its comparative advantages.D) Protectionism often results in higher prices for consumers and fewer choices, as it restricts foreign competition to benefit domestic industries.

Which Statements About Who Benefits and Pays the Cost of Protectionism