Question

During the 1990s, deadweight losses per job saved through tariffs and quotas in the apparel industry:____.

a. were greater than the wages earned in apparel jobs.
b. were small enough to ignore.
c. increased net national welfare.
d. were less than the value of the jobs saved.

Answer 1

The deadweight losses per job saved through tariffs and quotas in the 1990s apparel industry were greater than the wages earned by the employees in that sector.

Step-by-step explanation:

During the 1990s, deadweight losses per job saved through tariffs and quotas in the apparel industry were greater than the wages earned in apparel jobs. The protectionism in the textile and apparel industry led to higher imports costs, resulting in consumers paying more for clothing. Not all extra costs from tariffs or quotas were directed toward saving jobs, with only a portion going to workers while also causing a loss in economic efficiency. This loss in efficiency, along with the additional costs to consumers, represents the deadweight loss, whereby the economy is not operating at its optimal comparative advantage.