Question

QUESTION Which of the tollowing statements bet veflects protectionism and the concept of deadeeight lo O Protectioniam may ut in some amount of deadweight loss, butthis O Protectionism typically reu in ome amount of deadweight loss cannot resuit in deig lone tis a demand-side phenomnn O Protectionm raelyuts in some amount of deadweight loss QUESTIONS wich of the tolowna best reflects the reason for the "voston of ๑๐tas on themner of Japanese venies irrported no the Unted States rhthe 1 O This was away to raie tax nevenue for the govenmant O This was viewed as a way to counter untair toreign competition O Thia was viewed as a national seurity O This was vwiewed as an ue involving an intant indusy

Answer 1

Answer (4) : When the Government of a country imposes stringent taxation over the imports from foreign nation with a motive to protect or shield its domestic firms which manufacture the similar product, it is referred to as protectionism. Dead weigh loss refers to the wastage or the loss of the productivity skill, level of efficiency or physical, monetary or any other economic loss which results out of the excess or imperative implementation of any action from the government side. In a protectionism economy, the resources of the country are safeguarded against the foreign products so as to ensure they can survive in the market. It is a good step for the domestic firms. However, in this age of competition, over protectionism results in the resources of the country not being utilized to its optimum, since there is less adequate competition, the firms would not push the bar of optimum productivity to the maximum. Moreover, when foreign firms push their products in to an economy, they usually come with a quality rating which directly increases the competition In the market, and thereby the prices of the product more likely goes down. With the foreign firms not able to put their products in the market, in a protectionism, there is more likely to a stagnant price of the product ,and the end level consumers will bear the loss , or in other word will miss out of the welfare they would have attained due to the reduction in the prices of the products and the savings they would have gathers due to this reduction. Therefore, the statement that best reflects protectionism and the concept of deadweight loss is: Protectionism typically results in some amount of deadweight loss.

Answer (5) : The Japanese industrial and manufacturing industry has been top notch for a very long time now and in the 1950’s they were gathering pace with their highly efficient resources producing some of the best products in the market. One of such products were their vehicle industry producing some of the well renounced and best vehicles. The Japanese Vehicle industry had spread through out the world, this capturing the vehicle market and dominating it. The United States Government realized the fast-paced outreach of the Japanese Vehicles in the US markets., which hovered as a looming cloud over the local vehicle manufacturers and their many workers. The more the Japanese cars were purchased and the more they became popular, the lesser would be the share of the US based vehicle industry in the market. This would directly result in the loss of the local manufacturers and will lead to a reduction in the workforce in the country, and people might become jobless. Therefore, to protect the local firms from being non-existent and their citizens from being jobless, the United States Government decided to impose quotas over the imports of Japanese Vehicles in to the US markets. Therefore, the correct answer would be: This was viewed a way to protect American Jobs.