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Continued Tariff Protection for Industries That Have Already Attained All

Question 39

Multiple Choice

Continued tariff protection for industries that have already attained all potential economies of scale and possibilities for learning by doing is likely to


A) increase employment in the protected industries.
B) reduce average real income for the country's residents.
C) decrease prices to consumers of the products produced in the protected industries.
D) redistribute income away from the factors used in the protected industries.
E) both A and B are correct.

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