Question

is 19 wrong? need help with 20

O lower domestic consumption of the good than under free trade lower domestic production of the good than under free trade QUESTION 19 When the government increases tariffs O production switches from low-cost foreign producers to high-cost domestic producers, wasting resources domestic producers buy more of the good, increasing the gains from trade domestic producers produce more output, increasing the gains from trade deadweight losses are eliminated because foreign producers sell below their product cost QUESTION 20 As a result of tariffs, domestic producers tend to O gain more than domestic consumers lose spend less money on lobbying O have a greater incentive to lower their production costs lose more than the government gains Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Answer 1

a) "A"

when there is a tariff domestic producer that were out of competition because of lower competition will be back at a higher cost, your answer is right.

b) "B"

they will spend less money on lobbying, option A is wrong because consumer lose the most and it increases the revenue, dead weight loss and some government gains as well, due to tariff the producer gains so option 4 is wrong, and that reduces the incentive to reduce the cost of production, so option B is right.