According to this Application, tariffs in the United States are very high on textiles, apparel items and footwear. These tariffs disproportionately impact lower-income households because
A) these products represent a higher fraction of consumption of lower-income households than higher-income households.
B) the tariffs are only applicable to lower-income households.
C) higher-income households tend to purchase products produced in the United States, which are not subject to tariffs.
D) lower-income households tend to purchase more of these items than do higher-income households.
A
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Which of the following scenarios would be considered an investment according to economists?
A. The owner of a fishing company buys Google shares. B. The owner of a fishing company buys new fishing gear. C. The owner of a fishing company buys fuel to run the boats. D. A fishing company buys a few boats from another fishing company that was shutting down.
Which of the following is correct about comparative advantage?
A) Some countries will have a comparative advantage in everything. B) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country. C) Having a comparative advantage without an absolute advantage is impossible. D) A comparative advantage in a good means that the country can produce more of the good than any other country. E) None of the above answers is correct.
Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 sword in Estonia?
A) 1/3 of a belt B) 3/5 of a belt C) 1.67 belts D) 3 belts
Which of the following terms identifies something that macroeconomists would study but that microeconomists would NOT?
A) incentives B) resources C) rationality D) aggregates