02 May Question: Tariffs and quotas: A. in the short run, provide a competitive advantage to domestic producers of…
Tariffs and quotas:
A. in the short run, provide a competitive advantage to domestic producers of the protected good.
B. in the short run, provide a competitive disadvantage to domestic producers of the protected good.
C. are the main source of tax revenue for the federal government.
D. have been eliminated by the United States federal government.
Part B:
According to our text, free international trade:
A. in the long run raises total world output and the standard of living of the individual trading countries.
B. prevents unemployment and inflation (keeps them close to zero percent) in the trading countries in the short run.
C. provides maximum government autonomy over the monetary system in the trading countries.
D. hurts domestic industries and lowers the standard of living of most countries in the long run.
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