The following include several reasons that government might give for using a tariff on imports? Which is not valid, in the sense that the effect described will not happen.
a. To raise government revenue.
b. To help consumers.
c. To raise incomes of producers.
d. To respond to political pressures from import competing industries.
e. To increase national welfare at the expense of foreigners.
Ans: b. To help consumers.
You might also like to view...
When firms spend more on additional holdings of raw materials, parts and finished goods ________
A) they are increasing their fixed investment B) they are increasing their inventory investment C) they are increasing their private consumption D) all of the above E) none of the above
New Keynesian economists believe that nominal wages and prices respond ________ to shocks, and classical economists believe that nominal wages and prices respond ________ to shocks
A) quickly; quickly B) quickly; slowly C) slowly; quickly D) slowly; slowly