Suppose that a government increases tariffs on goods whose factors of production are scarce.Which of the following groups will be worse off in a Stolper-Samuelson framework?

Question

Quizplus · Accepted Answer

In the Stolper-Samuelson framework, increasing tariffs on goods whose factors of production are scarce will raise the price of these goods, making them more expensive for foreign importers who use them as inputs, thus making them worse off.

Suppose That a Government Increases Tariffs on Goods Whose Factors