answer

watching

views

3 Nov 2020

12. Protectionism certainly saves jobs in the specific industry being protected but, for two reasons, it costs jobs in other unprotected industries. The reasons are:

a. if consumers are paying higher prices to the protected industry, they inevitably have less money to spend on goods from other industries.

b. if the protected product is sold to other firms so that other firms must now pay a higher price for a key input.

c. All of these

d. None of these

Booster class

Microeconomics

Skill

Understanding Protectionism

answer

watching

224

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Raushan RajLv8

3 Nov 2020

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

According to the News Wire "Import Quotas" page 339, what is the net U.S. job loss from sugar quotas?

NEWS WIRE IMPORT QUOTAS

Obama Cuts Sour Deal on Sugar

President Barack Obama has kept a campaign promise to the sugar lobby at the expense of American families struggling to pay their grocery bills and U.S. manufacturing workers fighting to keep their jobs. . . .

Since the early 1980s, the domestic U.S. sugar industry has enjoyed cartel-like control of the domestic market. A system of price supports and import quotas virtually guarantees domestic beet and cane growers an 80 percent market share. At times, this has forced American families and sugar-consuming industries to pay prices two or three times the spot world price.

This has been bad news for families, who must pay higher prices at the grocery store, but equally bad for a segment of American workers. Artificially high domestic sugar prices raise the cost of production for refined sugar, candy and other confectionary products, chocolate and cocoa products, chewing gum, bread and other bakery products, cookies and crackers, and frozen bakery goods. Higher costs cut into profits and competitiveness, putting thousands of jobs in jeopardy. . . .

In all, 6,400 workers in the sugar-processing industry have lost their jobs because of their own governmentâs deliberate policy to drive up the cost of their major input. According to the U.S. International Trade Commission, the sugar program âsavesâ only 2,200 jobs in the sugar growing and harvesting industry. So our sugar policy eliminates three jobs for every one it saves.

âDaniel Griswold, Cato Institute

NOTE: Import restrictions raise domestic prices, making both domestic consumers and foreign producers worse off. They enrich domestic producers, however.

mauvebeetle192

6. Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. The opportunity cost of producing 1 orange for Alpha and Beta, respectively, are:

A. 0.25 apples; 0.5 apples.

B. 9 apples; 4 apples.

C. 0.5 apples; 0.25 apples.

D. 2 apples; 4 apples

10. The infant industry argument for protectionism suggests that an industry must be protected in the early stages of its development so that:

A. firms will be protected from subsidized foreign competition.

B. domestic producers can attain the economies of scale to allow them to compete in world markets.

C. there will be adequate supplies of crucial resources in case they are needed for national defence.

D. it will not be subjected to a takeover from a foreign competitor.

13. The race to the bottom scenario of global environmental degradation is explained roughly like this:

A. Companies seek to reduce their costs of operations on plant and equipment design and this results in higher levels of pollution.

B. Companies seek the lowest market prices on products in order to gain market share, resulting in inferior goods and increased waste and pollution.

C. Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their profits.

D. Companies seek to influence environmental legislation standards are set to the lowest possible standards in the USA in order to maximize profits.

17. If 112 Japanese yen purchased $1.00 U.S. in 2008 and 83 Japanese yen purchased $1.00 U.S. in 2009, then

A. the dollar depreciated against the yen

B. the dollar appreciated against the yen

C. the yen depreciated against the dollar

D. the yen weakened against the dollar

I am not in favor of tariffs and quotas for a few reasons. Tariffs could hurt the economy of a country since it raises the cost of domestic producers which in result they have to sell less. They have to sometimes also eliminate jobs as well since there would be a loss in production due to the reduction of profit. If people are losing jobs then they are losing income which hurts other businesses as well since consumers impacted by job loss will spend less. As a result of all this, it impacts the economy of the country. After some research I found that the World Bank estimates that if barriers like tariffs were eliminated, the global economy would expand up to 830 billion dollars by 2015. Even though domestic and foreign producers benefit from quotas since they receive higher prices and less competition, it hurts consumers. If the demand of a certain product is high, yet if a quota is placed to limit the amount of the product that is being imported, then it is a disadvantage on the consumerâs part. I do understand the purpose of quotas which is to reduce the amount of competition between other markets, but being a consumer myself I would be against it.

Please comment on it.

Weekly leaderboard

Home

Homework Help 3,900,000

Economics 400,000

Unlock all answers

Related textbook solutions

Principles of Economics

Principles of Macroeconomics

Principles of Microeconomics

Related questions

Weekly leaderboard