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lythong266 lythong266
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International trade policies are largely advocated, argued, and lobbied for based more on their distributional effects than on their aggregate or overall effects. What does this imply?



▸

Producers will lobby for protectionism even though they may know that their gains from protectionism will be outweighed by the losses to consumers.



▸

Consumers care more about how policies affect them than how policies affect them and everyone else, too.



▸

Tariffs are more effective than quotas.



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Consumers' surplus will rise (when it rises) more than producers' surplus will fall (when it falls).



▸

none of the above

Textbook 
Economics

Economics


Edition: 12th
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cglotfeltycglotfelty
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Producers will lobby for protectionism even though they may know that their gains from protectionism will be outweighed by the losses to consumers.
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