Question

Question 5 (1 point) Which of the following is not a result we would expect to result from a tariff on leather shoes? The price of leather shoes in the U.S. would increase The amount of shoes imported into the US. would decline. Fewer pairs of shoes would be sold in the U.S. Domestic producers would sell fewer shoes at the higher prices Question 6 (1 point) Which of the following arguments in favor of trade restrictions is of questionable validity? total domestic employment national security infant industries all of the above Question 7 (1 point) After the U.S. introduces of a tariff in the market for phones, the price of phones in the US will decrease increase remain the same change in an indeterminate manner

Answer 1

1) Solution: Domestic producers would sell fewer shoes at the higher prices.

Explanation: A tariff refers to a tax imposed by a government on products and services imported from other nations that serves to raise the price and consequently the imports become less desirable compared to the domestic products and service

2) Solution: all of the above

Explanation: The total domestic employment, infant industries and national securities are arguments in favor of trade restrictions which face questionable validity

3) Solution: increase

Explanation: The tariff in the market for phones would increase the price of phones

4) Solution: total world output will increase, and consumer surplus will increase as well

Explanation: When countries begin to expand their specialization it increases the world output and the well being from consumption.