In the Case of Declining Industries,wage Subsidies or Special Tax

question 41

Multiple Choice

In the case of declining industries,wage subsidies or special tax breaks that decline over time:

• A)can be more efficient than tariffs.
• B)are permanent import restrictions.
• C)can result in increasing shocks in the economy.
• D)equal or exceed the direct welfare loss from tariffs.
• E)result from diseconomies of scale.

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Definitions:

Deindustrialization

A process characterized by the decline in industrial activity in a region or economy, typically marked by the closing of factories and loss of manufacturing jobs.

Moral Capabilities

The capacities or abilities of individuals to make ethical choices, understand moral principles, and act in ways that are consistent with moral values.

Moral Persons

Beings capable of making ethical decisions and recognizing moral claims upon their actions.

Consequentialist Thought

Ethical philosophy considering the consequences of actions as the primary basis for any judgment about the rightness or wrongness of those actions.