Question

The benefit of saving some American jobs in specific industries protected from foreign competition Multiple Choice a. has risen in recent years. b. is much less than the costs to the whole American economy. c. is much greater than the costs to the whole American economy. d. has fallen in recent years.

Answer 1

Answer:

B. is much less than the costs to the whole American economy.

Explanation:

When foreign industries are prevented from entering the U.S. Market, the supply of the products that those foreign firms would provide is kept artificially low, in order to benefit domestic producers. This means that prices become more expensive than they should be, affecting all consumers.

For example, if the U.S. barred car imports from Japan, cars would become very expensive, and while the national car industry would benefit, the vast majority of consumers would be harmed by the higher prices.