Which of the following is an incorrect observation?
a. Import tariffs benefit domestic producers and the government, but harms domestic consumers
b. Gains from trade in terms of world output are reduced by export subsidies.
c. The overall domestic employment effects of a tariff imposition are likely to be positive.
d. If the imposition of a tariff leads to retaliatory tariffs by other countries, domestic employment outside the industry gaining the tariff protection would likely suffer.
c
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The marginal revenue product
A) represents the incremental contribution to the firm's total revenues obtained from an increase in a variable input. B) always increases when there is an increase in a variable input. C) gives the increase in cost when there is an increase in a variable input. D) gives the change in total product when an additional unit of a good is hired.
Investment tax credits (ITCs) are _________ the firm's tax bill when particular capital assets are purchased.
A. deducted from B. added to C. close to zero for D. none of these answer options are correct.