Economists Are Generally Opposed to Tariffs or Other Restrictions on Imported

question 159

Multiple Choice

Economists are generally opposed to tariffs or other restrictions on imported goods because of the negative secondary effects they create that more than offset the benefits to employment in the domestic industry. Which of the following could be considered a secondary effect of these trade restrictions?

• A) The price to consumers of the good in question will be higher as a result of the restriction, meaning consumers will be worse off.
• B) As consumers must spend more money to purchase the good, there will be employment losses in other domestic industries as consumers cut back on their spending on other things.
• C) Because there is a link between a country's imports and its exports, less imports from other countries will result in lower domestic employment in export industries.
• D) All of the above.

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Definitions:

September

September is the ninth month of the year in the Gregorian calendar, marking the transition from summer to autumn in the Northern Hemisphere.

Total Cost

The aggregate amount of money spent on or required for goods or services, including direct and indirect costs.

Beginning Inventory

The worth of products ready for purchase or utilization at the beginning of a financial period.

Beginning Inventory

The worth of merchandise ready for purchase at the beginning of a financial period.