Why might a country seek to protect an industry, even when the benefits are greatly outweighed by the cost?
What will be an ideal response?
First of all, a country’s government might face political pressure from domestic groups, such as a worker’s union in the disadvantage industry, to protect that industry. Interest groups can also collude together to promote protectionism in various industries. The public may also be drawn in by claims of the benefits of protectionism, such as protected domestic employment and staying loyal to their patriotic identity.
Also, unlike the benefits of protectionism, the costs are not directly visible to the public. This occurs because the costs are imbedded in the price of the protected goods and spread across millions of people, so that the cost born by an individual citizen is quite small. This leads to very little organized public protest against protectionism.
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Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5
Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?
Bargaining does NOT normally occur in
A) vertical business relationships. B) wages and working conditions under a union contract. C) posted price markets. D) the legal system.
If a country's per capita GDP is initially $100 and then grows for 3 years at 8 percent per year, its per capita GDP at the end of the three years will be around $10,000
a. True b. False Indicate whether the statement is true or false
An example of the "equity vs. simplicity" tradeoff is the tax treatment of
A. capital gains. B. spouses. C. earned income. D. children.