When tariffs on imports are eliminated, everyone benefits.
Answer the following statement true (T) or false (F)
False
Rationale: The elimination of tariffs will cause prices in one country to increase while they will cause prices in the other country to decrease. Thus, producers in the first country and consumers in the second country benefit, and consumers in the first country and producers in the second country are hurt. (The net benefit increases in both countries -- but there are winners and losers.)
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A financial system is a means of bringing together savers and borrowers.
Indicate whether the statement is true or false.
A society that is inside its production possibilities frontier is efficient.
Answer the following statement true (T) or false (F)
The income per capita of two neighboring countries for a particular year were equal. However, Country 1 had a higher income per worker than Country 2. Which of the following is likely to be true?
A) The number of people unemployed is lower in Country 1 than in Country 2. B) The number of children aged below 15 is higher in Country 2 than in Country 1. C) The number of retired people is higher in Country 2 than in Country 1. D) The number of people employed is higher in Country 2 than in Country 1.
As consumption increases, total utility increases
A) at an increasing rate. B) at a decreasing rate. C) at a constant rate. D) and marginal utility increases.