S07-Reasons - Econ 340 Winter Term 2011 Study Questions...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 340 Alan Deardorff Winter Term 2011 Reasons Study Questions Page 1 of 4 Study Questions Lecture 7 Reasons for Protection Part 1: Multiple Choice Select the best answer of those given. 1. The following include several reasons that government might give for using a tariff on imports? Which is not valid, in the sense that the effect described will not happen. a. To raise government revenue. b. To help consumers. c. To raise incomes of producers. d. To respond to political pressures from import competing industries. e. To increase national welfare at the expense of foreigners. 2. For many purposes, the use of a tariff is said by economists to be “second best.” This means that a. The tariff cannot be beneficial for the country as a whole. b. The tariff does not help those with the highest incomes, but only those with the second highest. c. Another policy exists that would accomplish the same purpose as the tariff at lower economic cost. d. The tariff benefits the country only by making other countries worse off. e. The country should use a subsidy. 3.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

S07-Reasons - Econ 340 Winter Term 2011 Study Questions...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online