When tariffs are imposed, the losers include
A. Domestic consumers and the domestic government.
B. Foreign consumers and domestic producers of import-competing goods.
C. Domestic consumers and foreign producers.
D. Domestic consumers and domestic producers of import-competing goods.
Answer: C
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
The higher a security's price in the secondary market the ________ funds a firm can raise by selling securities in the ________ market
A) more; primary B) more; secondary C) less; primary D) less; secondary
When the Federal Reserve increases the money supply, people ________
A) decrease their purchases of bonds and other financial assets B) may, in the short run, increase their purchases of goods and services C) decrease the quantity of money holdings D) all of the above E) none of the above
If the price effect outweighs the income effect of a wage increase, the quantity of labor supplied will:
A. increase. B. decrease. C. remain the same. D. be negative.