Answer the following statements true (T) or false (F)
1. The revenue and protective purposes of a tariff are largely incompatible.
2. Tariffs bring about a transfer of income from the consumer of the protected product to domestic producers of the product.
3. For an anti dumping tariff to be imposed in the United States, competitive damage from dumping must be shown.
4. Perhaps the strongest argument for trade restrictions is that they protect U.S. workers from low-wage foreign workers.
5. During times of recession, retaining the domestic economy’s money at home is a valid argument for restricting imports.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The charge of dumping electric lawnmowers in the Omegalon market means that Alphonia was accused of
A) selling faulty electric lawnmowers in Omegalon. B) discarding electric lawnmowers which would not sell in their home country. C) selling electric lawnmowers below cost or below domestic prices. D) selling counterfeit-branded electric lawnmowers in Omegalon.
The income effect of a price increase causes a decrease in the quantity of a normal good demanded
Indicate whether the statement is true or false