Many economists criticize protectionism because it causes losses to consumers and eliminates jobs in domestic industries that use protected products.Why, then, do some people support protectionism?
A)The criticisms of economists are based on theory. In fact, protectionism increases consumer and producer surplus as well as employment.
B)Supporters of protectionism in high-income countries believe that wages will fall as a result of competition with firms from developing countries.
C)Supporters of protectionism believe free trade will cause their countries to lose their comparative advantage.
D)Supporters of protectionism believe that free trade will lead to inflation.

Question

Quizplus · Accepted Answer

Supporters of protectionism in high-income countries often fear that their wages will fall as a result of competition with firms from developing countries. They believe that protectionism can help to shield domestic industries and jobs from cheaper foreign competition. However, many economists suggest that protectionism can ultimately harm consumers and end up being counterproductive for overall economic growth.

Many Economists Criticize Protectionism Because It Causes Losses to Consumers