If it is desirable to enhance the incomes of factors used intensively in the import-competing industry, then a tariff actually lowers national welfare.
Answer the following statement true (T) or false (F)
False
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Which of the following is an assumption of the decision-making process followed by consumers to maximize utility?
A. Marginal utility always increases as more units of a good are consumed. B. The consumer's income increases as prices of goods increase. C. The consumer considers the prices of the products. D. The consumer oftentimes is not sure about her preferences.
Inefficiency is best illustrated by which of the following?
a. foregoing civilian goods in order to produce more military goods b. limiting economic growth by reducing capital spending c. high levels of unemployment of labor and other resources that could be productively employed d. producing outside the production possibilities frontier
Unlike an internally held public debt, an externally held public debt
a. cannot pass the debt burden on to future generations b. can pass the debt burden on to future generations c. expires upon maturity d. cannot be reduced because foreigners hold the debt e. causes crowding out
Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, its total variable cost is:
A. $12,500. B. $14,300. C. $19,800. D. $27,000.