During the Great Depression, many industrial countries tried protecting domestic jobs by raising tariffs. Economic theory would suggest that the result would be
A) success for only the countries that raised tariffs first.
B) success for firms that had a comparative advantage in manufactured goods rather than agricultural goods.
C) reduced exports and volume of trade for everyone.
D) increased incomes in the countries that pursued this policy.
Answer: C
You might also like to view...
Marginal social benefit equals
A) marginal external benefit. B) marginal private benefit. C) marginal private benefit minus marginal external benefit. D) marginal private benefit plus marginal external benefit. E) marginal external benefit minus marginal private benefit.
Refer to Figure 24-1. Ceteris paribus, an increase in households' expectations of their future income would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
An increase in the U.S. demand for the Mexican peso
A) causes an increase in the U.S. dollar price of a Mexican peso. B) causes the Mexican peso to appreciate. C) causes the U.S. dollar to depreciate. D) causes Mexican goods to be relatively more expensive. E) All of the above.
U.S. imports are most likely to increase when
a. U.S. GDP decreases. b. U.S. unemployment rates fall. c. U.S. prices fall. d. foreign prices rise.