Why does protectionism cost jobs in other unprotected industries? Select the two correct answers below. Select all that apply: When people take jobs in the protected industry, they leave jobs in other industries. When the product of a protected industry is an input in the production of other industries, then the higher input price from protectionism results in higher costs of production, higher prices, lost sales, thus, loss of jobs. Consumers will switch to buying the goods of the protected industry, therefore they buy fewer goods from unprotected industries, therefore, causing them a loss of revenue and jobs as a result. If consumers are paying higher prices to the protected industry, they have less money to spend on goods from other industries, and so jobs are lost in those other industries.

Why does protectionism cost jobs in other unprotected industries? Select the two correct answers below. Select all that apply: When people take jobs in the protected industry, they leave jobs in other industries. When the product of a protected industry is an input in the production of other industries, then the higher input price from protectionism results in higher costs of production, higher prices, lost sales, thus, loss of jobs. Consumers will switch to buying the goods of the protected industry, therefore they buy fewer goods from unprotected industries, therefore, causing them a loss of revenue and jobs as a result. If consumers are paying higher prices to the protected industry, they have less money to spend on goods from other industries, and so jobs are lost in those other industries.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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