Which of the following is an incorrect observation?
a. Import tariffs benefit domestic producers and the government, but harms domestic consumers
b. Gains from trade in terms of world output are reduced by export subsidies.
c. The overall domestic employment effects of a tariff imposition are likely to be positive.
d. If the imposition of a tariff leads to retaliatory tariffs by other countries, domestic employment outside the industry gaining the tariff protection would likely suffer.
c
You might also like to view...
The corporate income tax is the single largest source of revenue for the federal government.
Answer the following statement true (T) or false (F)
Stephan prefers practicing his keyboard everyday instead of writing articles for the local newspaper, despite the fact that the newspaper will pay him $10 for every 100 words he writes. This implies that: a. his labor supply curve is a horizontal straight line. b. he has a high opportunity cost of leisure
c. his labor supply curve is negatively sloped. d. he places a high value on time spent in leisure.
If the market demand for a good is analyzed for a short period of time, its price elasticity of demand will be: a. inelastic
b. elastic. c. infinitely elastic. d. equal to zero.
Which is a reason why there is no advertising by individual firms under pure competition?
A. Firms produce a homogeneous product. B. Firms do not make long-run profits. C. The quantity of the product demanded is very large. D. The market demand curve cannot be increased.