If we consider the impact on both consumers and

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25. If we consider the impact on both consumers and producers, then protection of the steel industry is: a. In the interest of the United States as a whole, but not in the interest of the state of Pennsylvania b. In the interest of the United States as a whole and in the interest of the state of Pennsylvania c. Not in the interest of the United States as a whole, but it might be in the interest of the state of Pennsylvania d. Not in the interest of the United States as a whole, nor in the interest of the state of Pennsylvania 26. If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars. But if I purchase a stereo produced in the United States, I obtain the stereo and the dollars remain in America. This line of reasoning is: 4
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Chapter 5: Tariffs 27. The most vocal political pressure for tariffs is generally made by: 28. If we consider the interests of both consumers and producers, then a policy of tariff reduction in the U.S. auto industry is: 29. Free traders point out that: a. There is usually an efficiency gain from having tariffs b. There is usually an efficiency loss from having tariffs c. Producers lose from tariffs at the expense of consumers d. Producers lose from tariffs at the expense of the government 30. A decrease in the import tariff will result in: 5
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