What is/are the central argument(s) against tariffs?
(a) They redistribute income away from consumers who are paying higher prices because of the tariffs. These rents are given to the individual industries that are protected by the tariffs and
are operating inefficiently.
(b) A laissez-faire economy is the American way.
(c) They protect the wealthy.
(d) They benefit only fast-growing industries.
(a)
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Possession of information by one party in a financial transaction but not by the other party is
A) symmetric information. B) asymmetric information. C) informational hazard. D) financial intermediation.
Statistical correlation always implies causation
a. True b. False Indicate whether the statement is true or false
When the Fed sells government securities to a bank, the
A) bank's reserves increase. B) bank's reserves decrease. C) bank's reserves do not change. D) securities are an asset for the bank. E) b and d
Suppose consumers of cigarettes can be classified into two groups: heavy users and light users. Heavy users purchase more cigarettes and are less sensitive to price changes relative to light users. To determine whether a heavy user suffers a greater loss of consumer surplus than a light user does when the price of cigarettes increases, one would need to know
A) each group's average income. B) the actual quantities purchased by each. C) each individual's price elasticity of demand. D) no additional information.