A High Tariff on Imported Good X Might Reduce Domestic

question 140

Multiple Choice

A high tariff on imported good X might reduce domestic employment in industry Y if

• A) X is an input used domestically in producing Y.
• B) X and Y are substitute goods.
• C) X is an inferior good.
• D) Y is an inferior good.

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Definitions:

Outsourced Activities

Tasks or operations handed over to external entities or companies to capitalize on efficiencies or specialized skills not available internally.

Lack of Loyalty

Refers to the absence of allegiance, commitment, or fidelity in relationships, such as between an employee and employer.

Virtual Organization

A company that operates and collaborates through electronic means, often without a physical presence.

Boundaryless Organization

A type of company structure that eliminates traditional barriers between departments as well as barriers between the organization and the external environment.