Asked by
Jillian Wilder
on Dec 12, 2024Verified
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.
Tariffs
Taxes imposed on imported goods and services, which are typically used by governments to protect domestic industries, raise revenue, or exert political leverage.
Trade Restrictions
Regulations or policies that countries adopt to limit the import and export of goods and services, often to protect domestic industries.
- Acknowledge the ancillary impacts of fiscal policies and individual actions.
Verified Answer
ST
Learning Objectives
- Acknowledge the ancillary impacts of fiscal policies and individual actions.
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