In 1845, French economist Frédéric Bastiat famously compared tariffs to blocking out the sun since both low-priced imports and free sunlight discourage domestic industry. What part of the trade diagram best describes the encouragement of domestic industry if Bastiat's "blockade" was taken seriously?
A) deadweight loss
B) fall in consumer surplus
C) fall in producer surplus
D) wasted resources
Correct Answer:
Verified
Q85: When the government increases tariffs:
A) production switches
Q86: Use the following to answer questions:
Figure: International
Q87: Although domestic consumers gain more from free
Q88: A tariff results in a higher:
I. consumer
Q89: Use the following to answer questions:
Figure: International
Q91: _ have a similar effect upon domestic
Q92: Eliminating tariffs on imported sugar would:
A) cause
Q93: Which statement provides an explanation for tariffs
Q94: According to the text, the sugar tariff
Q95: Which of the following statements describes reasons
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