Which of the following statements are true of protectionism? There is more than one correct answer. Tick all correct answers.*2 pointsConsumers buy more domestic productsPrices of products and services are lowerThere is more international competitionDomestic prices of products and services are higherImport increases considerablyThe firms and workers who are protected can sell more of their goods in the home market
Question
Which of the following statements are true of protectionism? There is more than one correct answer. Tick all correct answers.*2 pointsConsumers buy more domestic productsPrices of products and services are lowerThere is more international competitionDomestic prices of products and services are higherImport increases considerablyThe firms and workers who are protected can sell more of their goods in the home market
Solution
The correct statements about protectionism are:
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Consumers buy more domestic products: This is often true because protectionism involves policies that protect domestic industries from foreign competition. This can be through tariffs, quotas, or other restrictions on foreign goods, making domestic goods more attractive.
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Domestic prices of products and services are higher: This is also often true. When a country imposes tariffs or quotas on foreign goods, it can cause the price of those goods to rise. This can also cause the price of domestic goods to rise, as there is less competition to keep prices low.
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The firms and workers who are protected can sell more of their goods in the home market: This is true. Protectionism is designed to protect domestic industries and jobs. By reducing foreign competition, it allows domestic firms and workers to sell more of their goods in the home market.
The other statements are generally not true of protectionism. Protectionism tends to reduce international competition and can lead to a decrease in imports. It also often leads to higher, not lower, prices for products and services.
Similar Questions
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