"Supporters of import restrictions and protectionist policies place greater weight on producer welfare than on consumer welfare." Comment
What will be an ideal response?
Import restrictions increase the producer surplus of domestic producers. Consumer surplus, however, decreases by more than producers gain. Thus, the statement seems to be correct.
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Foreign currency prices of the U.S. dollar are currently determined by a managed float exchange rate system
Indicate whether the statement is true or false
It may be argued that Japan's explicit promotion of its microchip industry was an excellent example of successful industrial policy
What criteria would you apply to determine whether such a policy is or is not successful? Judging from your own stated criteria, was Japan's exercise successful? Why or why not? What information would a government require in order to increase the probability that its industrial policy would promote long term self-generated economic growth?