If Japan Levies Tariffs on U

question 211

Multiple Choice

If Japan levies tariffs on U.S.goods entering Japan,this will tend in the short run to _____ U.S.producers and _____ Japanese producers.

• A)benefit;benefit
• B)damage;benefit
• C)benefit;damage
• D)damage;damage

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Definitions:

Output Effect

The impact on total revenue when a firm alters its production level, influencing the quantity of goods sold and potentially the market price.

Fixed Proportions

A production process in which inputs are used in a constant ratio to each other, with no substitution possible between the inputs.

Labor Productivity

An indicator of economic efficiency that evaluates the quantity of goods and services produced (output) relative to the total hours spent in producing those goods and services.

Complementary Resources

Resources used together in production that increase each other's effectiveness.