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) Supporters of protectionism in high-income countries believe that wages will fall as a result of competition with firms from developing countries.
B) Supporters of protectionism believe that free trade will lead to inflation.
C) The criticisms of economists are based on theory. In fact, protectionism increases consumer and producer surplus as well as employment.
D) Supporters of protectionism believe free trade will cause their countries to lose their comparative advantage.
A
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What will be an ideal response?
The total physical product of an input is the same thing as its
a. total revenue product. b. marginal physical product times output. c. output. d. total consumer's surplus.
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A. no one; employers B. workers; employers C. employers; workers D. employers; no one
Factor markets are also referred to as ______ markets.
a. commodity b. product c. outside d. input