Which of the following is a reason for the success that firms have in getting the government to erect barriers to foreign competition?
A)The jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify.
B)People who benefit from foreign trade tend not to vote in elections;people who are harmed by foreign trade are much more likely to vote.
C)Firms that are harmed by trade barriers have less money to lobby government officials to eliminate the barriers than do firms that benefit from trade barriers.
D)The costs from free trade are greater than the benefits.

Question

Quizplus · Accepted Answer

The jobs lost to foreign competition are often more visible and concentrated, making them easier to identify and rally support against, whereas the benefits of foreign trade, such as lower prices and increased variety, are more diffuse and harder to pinpoint. This visibility bias can lead to more political pressure to erect trade barriers.

Which of the Following Is a Reason for the Success