Brazil has an absolute advantage in the production of shoes. All of the above are true. Answer the next three questions using the following diagram, which shows the supply by U.S. producers and the demand by U.S. consumers for chocolates. U.S. producers will not sell any chocolates. U.S. consumption rises by 8 million pounds.
Protectionism raises a country's average standard of living.
Even though protectionism reduces the average standard of living, the number of parties benefitting from protectionism exceeds the number of parties hurt by protectionism. Even though protectionism harms more parties than it benefits, those who stand to gain exert more political pressure. Even though protectionism reduces a country's average standard of living, politicians are totally unaware that it has any adverse effects. An increase in imports. A recession in the United States.