Question

given that tariffs and quotas cost consumers and that they are grossly inefficient means for creating or preserving jobs, why do citizens allow these policies to exist? which industries are more heavily protected in the united states and japan? do you think relatively rich or relatively poor countries are most affected by the tariffs ? explain.

Answer 1

Protectionism through tariffs or quotas costs so much to save jobs because not all of the extra money consumers pay goes towards job preservation. Industries that are protected only allocate a portion of the higher prices of protected goods to saving jobs. Furthermore, protectionism prevents the economy from utilizing its comparative advantage, resulting in lost economic efficiency.

Step-by-step explanation:

The reason protectionism through tariffs or quotas costs so much to save jobs is because not all of the extra money consumers pay goes towards saving jobs. When tariffs are imposed, the protected industries may increase their profits, invest in equipment, and provide higher wages to existing employees. However, not all of the higher price of protected goods goes towards saving jobs. Additionally, protectionism prevents the economy from utilizing its comparative advantage, leading to lost economic efficiency.