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Joseph Barnett
on Oct 25, 2024

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Import protections are often imposed because:

A) import protections increase total surplus,even though some groups are harmed.
B) groups representing import-competing industries are more cohesive than consumers.
C) benefits to producers outweigh the costs to the consumer.
D) the loss in consumer surplus is usually quite small.

Import Protections

Measures such as tariffs and quotas that countries implement to protect their domestic industries from foreign competition.

Consumer Surplus

The disparity between the amount consumers are prepared to spend on a product or service and the actual price they pay.

Import-Competing Industries

Sectors within an economy that produce goods or services in direct competition with imports, often affected by trade policies.

  • Acquire knowledge of the primary justifications for and against the implementation of protectionism in international trading practices.
  • Recognize the political motivations behind trade protection measures.
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Madison ReiningaOct 27, 2024
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