Suppose That a Government Increases Tariffs on Goods Whose Factors

question 45

Multiple Choice

Suppose that a government increases tariffs on goods whose factors of production are scarce.Which of the following groups will be worse off in a Stolper-Samuelson framework?

• A)Exporters using abundant factors.
• B)Domestic producers using abundant factors.
• C)Foreign investors.
• D)Foreign importers who use the good as an input.
• E)Political parties.

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