Many people argue that the imposition of tariffs in industry X will increase factor incomes in that industry and therefore be good for the country as a whole.The counter-argument is that
A) the increase in factor incomes in industry X would reduce profits to business owners by an equal amount.
B) factor incomes would first rise and then decrease in industry X.
C) the increase in industry X factor incomes would be more than offset by reductions in real incomes to all other domestic residents.
D) the increase in factor incomes would increase unemployment.
E) factor incomes overall would increase,but wages in industry X would fall,which would hurt workers in that industry.
Correct Answer:
Verified
Q30: Suppose all countries try to expand their
Q31: Consider the following statement: "Canada is unambiguously
Q32: For most products,Canada is a small economy
Q33: Over the long run,protecting a domestic industry
Q34: Consider the following statement: "Canadians on average
Q36: The effect of imposing a tariff on
Q37: Suppose Canada reduces a tariff on imported
Q38: Canada is a net importer of durable
Q39: Canada is a net importer of durable
Q40: Assume Canada is trading with a country
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents