Many People Argue That the Imposition of Tariffs in Industry

question 77

Multiple Choice

Many people argue that the imposition of tariffs in industry X will increase factor incomes in that industry and therefore be good for the country as a whole.The counter-argument is that

• A)the increase in factor incomes in industry X would reduce profits to business owners by an equal amount.
• B)factor incomes would first rise and then decrease in industry X.
• C)the increase in industry X factor incomes would be more than offset by reductions in real incomes to all other domestic residents.
• D)the increase in factor incomes would increase unemployment.
• E)factor incomes overall would increase,but wages in industry X would fall,which would hurt workers in that industry.

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Definitions:

Standard Normal

A special case of the normal distribution with a mean of zero and a standard deviation of one.

Random Variable

A random variable is a variable whose values depend on outcomes of a random phenomenon, used in probability and statistics to model real-world processes.

Negative Value

A numerical value less than zero, indicating a deficit or loss in a particular context.

Standard Normal

A standard normal distribution characterized by a mean of 0 and a standard deviation of 1.