Which of the following statements is true of the impact of trade restrictions on domestic employment?
a. Domestic firms will produce the goods that otherwise would have been produced abroad, thus employing foreign workers instead of domestic workers.
b. Beside the protected industry, other industries will also benefit in terms of employment.
c. Workers in the protected industry migrate to other industries.
d. Restrictions imposed on trade redistribute jobs by creating employment in the protected industry and reducing employment elsewhere.
e. Minimum wages for skilled and unskilled labor increase in the domestic country.
d
You might also like to view...
Which of the following is NOT a reason social returns might be greater than private returns?
A) Excess competition between firms B) Knowledge spillovers C) Spillovers from research and development D) Capital market imperfections
The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob is risk averse because
A) his utility function is concave. B) he has diminishing marginal utility of wealth. C) he is willing to pay a premium to avoid a risky situation. D) All of the above.