The Effect of a Tariff on a Good in Which

question 37

Multiple Choice

The effect of a tariff on a good in which the domestic industry does NOT have a comparative advantage is

• A) an increase in the exports of the good.
• B) that the domestic industry's gain is just offset by the consuming public's loss.
• C) a reduction in the nation's standard of living.
• D) fewer jobs and lower wages for domestic workers in the protected industry.
• E) nonexistent if the domestic industry has an absolute advantage.

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