Continued Tariff Protection for Industries That Have Already Attained All

question 57

Multiple Choice

Continued tariff protection for industries that have already attained all the possible economies of scale will likely

• A)reduce employment in the protected industries.
• B)reduce the stream of tariff revenue to the government.
• C)redistribute income away from the factors used in the protected industries.
• D)maintain high prices to consumers of the products produced in the protected industries.
• E)result in lower domestic prices for the products they produce.

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Definitions:

Reactive

Characterized by actions taken in response to external situations or events rather than initiating change proactively.

Competition Driven

A market situation where businesses are highly motivated to outperform their rivals in order to gain greater market share and customer loyalty.

Competitive Advantages

Attributes or circumstances that allow a company or country to produce goods or services at a lower price or in a more desirable manner than competitors.

Previously Introduced

Refers to items or concepts that have been mentioned or brought to attention earlier in a discussion or document.