The efficiency case made for free trade is that as trade distortions such as tariffs are dismantled and removed
A) government tariff revenue will decrease, and therefore national economic welfare will decrease.
B) government tariff revenue will decrease, and therefore national economic welfare will increase.
C) deadweight losses for producers and consumers will decrease, hence increasing national economic welfare.
D) deadweight losses for producers and consumers will decrease, hence decreasing national economic welfare.
E) government tariff revenue will increase, hence increasing national economic welfare.
C
You might also like to view...
Refer to the below graph of the market for low-skilled labor. Sd is the supply of domestic resident workers, and St is the total supply of labor including undocumented workers. Suppose the government cuts off the flow of illegal immigrants to this market. By how much will the employment of legal residents be increased?
A. 15M
B. 120M
C. 135M
D. 22M
When the U.S. price level increases, economists predict a:
A. decrease in expenditure. B. movement down along the aggregate demand curve. C. shift to the right of the aggregate demand curve. D. shift straight up of the aggregate demand curve.
Externalities always consist of benefits that are not confined to the person or organization that decides how much of a good to produce or consume.
Answer the following statement true (T) or false (F)
A sub-prime loan is
A. at a very high interest rate, sometimes as high as 30%. B. at a rate 1% above the prime rate of interest. C. at an interest below the prime rate of interest. D. the preferred loans of the very wealthy in the United States.