Why do countries impose protection even if it lowers economic welfare? Explain fully
What will be an ideal response?
Governments may not be interested in maximizing economic welfare. Instead they have need for revenues, they may want to redistribute income, there may be second best considerations or national defense reasons, etc.
Economics
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A country that dollarizes
A) maximizes its seignorage. B) earns the same amount of seignorage as it would with a currency board. C) earns the same amount of seignorage as it would with exchange-rate targeting. D) eliminates its seignorage. E) must pay seignorage to other governments to use their currency.
Economics
Specialization is the concept of devoting resources to the production of only a small number of goods and services
a. True b. False Indicate whether the statement is true or false
Economics