Graphical analysis of tariffs reveals that:
A. they benefit domestic consumers at the expense of domestic producers.
B. revenue gains outweigh the costs to domestic consumers.
C. they increase domestic production of the good for which imports face tariffs.
D. although the benefits are not shared equally, everyone in the domestic economy benefits
from tariffs.
C. they increase domestic production of the good for which imports face tariffs.
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The nominal cost per unit of output rises when production is pushed beyond an economy's potential output.
a. true b. false
The use of goods and services for personal satisfaction is known as
A. production. B. the formation of capital goods. C. personal investment. D. consumption.
The change in the amount of a good purchased after a shift of the supply curve depends on
A. the size of the shift. B. the slope of the demand curve. C. whether the market is subject to price controls. D. All of these responses are correct.
If the exchange rate changes from 1.10 euros per dollar to 1.00 euro per dollar, the dollar has
A) depreciated against the euro. B) appreciated against the euro. C) fallen inversely in value. D) appreciated against the dollar. E) depreciated against the dollar.