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A Tariff on Imported Goods Produced by an Unlimited Industry

Question 157

Multiple Choice

A tariff on imported goods produced by an unlimited industry could benefit the members of the domestic union since the tariff would most likely


A) lower the price of the output that workers purchase.
B) lower the domestic production of the good and increase wages.
C) increase the demand for domestic, union-made goods.
D) decrease the cost of the imported goods.

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