Many people argue that the imposition of tariffs in industry X will increase factor incomes in that industry and therefore be good for the country as a whole. The counter-argument is that... a. Factor incomes would first rise and then decrease in industry X. b. The increase in industry X factor incomes would be more than offset by reductions in real incomes to all other domestic residents. c. The increase in factor incomes in industry X would reduce profits to business owners by an equal amount. d. Factor incomes overall would increase, but wages in industry X would fall, which would hurt workers in that industry. e. The increase in factor incomes would increase unemployment.
Many people argue that the imposition of tariffs in industry X will increase factor incomes in that industry and therefore be good for the country as a whole. The counter-argument is that... a. Factor incomes would first rise and then decrease in industry X. b. The increase in industry X factor incomes would be more than offset by reductions in real incomes to all other domestic residents. c. The increase in factor incomes in industry X would reduce profits to business owners by an equal amount. d. Factor incomes overall would increase, but wages in industry X would fall, which would hurt workers in that industry. e. The increase in factor incomes would increase unemployment.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q53
Many people argue that the imposition of tariffs in industry X will increase factor incomes in that industry and therefore be good for the country as a whole. The counter-argument is that...
a.
Factor incomes would first rise and then decrease in industry X.
b.
The increase in industry X factor incomes would be more than offset by reductions in real incomes to all other domestic residents.
c.
The increase in factor incomes in industry X would reduce profits to business owners by an equal amount.
d.
Factor incomes overall would increase, but wages in industry X would fall, which would hurt workers in that industry.
e.
The increase in factor incomes would increase unemployment .
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