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Why does protectionism cause a deadweight loss in trade? Group of answer choices It creates a loss of sales tax revenue from decreased consumption. Protectionism
Why does protectionism cause a "deadweight loss" in trade? Group of answer choices It creates a loss of sales tax revenue from decreased consumption. Protectionism is likely to cause trade partners to raise trade barriers, thus costing exporters sales. Developing countries have to go into debt to subsidize consumers so they can buy the higher priced imports. It causes countries to switch production to industries where lack of comparative advantage makes production less efficient
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