Countries make use of particular types of automobiles for taxis (ex. Luxemburg uses a vehicle called a sack for taxis, importing parts from Montana and Russia to make them). Fill in the blank with the correct phrase : (better off, worse off, unaffected, ambigiously affected) If Austria wanted to protect its taxi manufacturing industry from Russian competition by putting a tax on imports, Austrian consumers would be _______ , Austrian producers would be __________ , Russian consumers would be __________ , and Russian producers would be______________.
Countries make use of particular types of automobiles for taxis (ex. Luxemburg uses a vehicle called a sack for taxis, importing parts from Montana and Russia to make them).
Fill in the blank with the correct phrase : (better off, worse off, unaffected, ambigiously affected)
If Austria wanted to protect its taxi manufacturing industry from Russian competition by putting a tax on imports, Austrian consumers would be _______ , Austrian producers would be __________ , Russian consumers would be __________ , and Russian producers would be______________.
The following phrase are Normative or positive:
The Austrian government should protect Austrian taxi manufacturers by install a tax.
A tax on taxi imports would be inefficient.
The tax revenue earned by the Austrian government is more important than the inefficiency caused by the tax.
The tax revenues should be used to subsidize Austrian taxi rides, making them more economical.
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