Th4.1: Impact of Protectionist Policies on Consumers Flashcards
1
Q
Why are there higher prices for consumers?
A
as they are unable to buy imports at the cheaper price
2
Q
Why does it tend to raise the price of domestic producers?
A
since goods and services needed for the production of these goods may also suffer from import controls and it limits the competition for domestic producers so they have less incentive to be efficient
3
Q
Moreover, they suffer from…
A
less choice
