Many economists criticise 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

Some people support protectionism because they believe that competition from firms in developing countries will lower wages in high-income countries. They see protectionism as a way to protect their domestic industries and maintain higher wages.

Many Economists Criticise Protectionism Because It Causes Losses to Consumers