Which of the following is true of protectionism?

Question

Quizplus · Accepted Answer

Protectionism typically involves imposing tariffs or other trade barriers on imports, which raises the price of imported goods. This price increase is then passed on to domestic consumers, who must pay more for the same products. As a result, protectionism generally increases prices for domestic consumers, which reduces social surplus (the combined benefit to consumers and producers). While protectionism may provide benefits to domestic producers, these benefits are generally smaller than the losses imposed on consumers, leading to an overall reduction in social surplus.

Which of the Following Is True of Protectionism