The Diagram Below Shows the Demand and Supply Curves for Refrigerators

question 19

Multiple Choice

The diagram below shows the demand and supply curves for refrigerators in Canada.
FIGURE 34- 1
-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 would increase unemployment.
• B)the increase in factor incomes in industry X would reduce profits to business owners by an equal amount.
• C)the increase in industry X factor incomes would be more than offset by reductions in real incomes to all other domestic residents.
• D)factor incomes would first rise and then decrease in industry X.
• 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:

Bananas

A tropical, crescent-shaped, yellow fruit that is soft and sweet when ripe, widely consumed and grown in humid regions around the world.

Aesthetic Importance

The value or significance of something based on its beauty or emotional impact, often related to the arts or nature.

Wildflowers

Wild plants that grow naturally without intentional human planting or cultivation.

Ecological Importance

The significance of a natural element or system in maintaining balance and supporting life in an ecosystem.