During the 1990s, deadweight losses per job saved through tariffs and quotas in the apparel industry

Question

Quizplus · Accepted Answer

Deadweight losses represent the decrease in economic efficiency caused by an intervention in the market. In this case, tariffs and quotas on the apparel industry lead to higher prices for consumers and lower demand for apparel products, resulting in a loss of economic welfare. The deadweight losses per job saved through these policies were larger than the wages earned in apparel jobs, indicating that the cost of protecting these jobs was not justified by the benefits. Therefore, choice A is the best answer.

During the 1990s, Deadweight Losses Per Job Saved Through Tariffs