Continued Tariff Protection for Industries That Have Already Attained All

question 16

Multiple Choice

Continued tariff protection for industries that have already attained all potential economies of scale and opportunities for learning by doing is likely to

• A)redistribute income in favour of the factors used in the protected industries.
• B)decrease prices to consumers of the products produced in the protected industries.
• C)reduce employment in the protected industries.
• D)reduce the stream of tariff revenue to the government.
• E)result in increased demand for imports.

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