Order the answer to: True or False: 1. When…
| Question | True or False: 1. When the domestic economy has a comparative advantage in a good, exporting that good increases domestic wealth because, while domestic consumers lose from the free trade, these negative effects are more than offset by the positive gains captured by producers. 2. When a country does not produce a good relatively as well as other countries do, international trade benefits domestic consumers but harms domestic producers. 3. When a country does not produce a good relatively as well as other countries do, allowing international trade will increase consumer surplus less than producer surplus decreases. 4. Tariffs are usually relatively large revenue producers for governments. 5. Tariffs result in gains to domestic producers that are more than offset by losses to domestic consumers. 6. The history of infant-industry tariffs suggests that the tariffs often linger long after the industry is mature and no longer in need of protection. 7. When foreign countries are dumping, they are trying to gain a greater share of the world market for their products. 8. What may seem like dumping may in fact be comparative advantage. 9. The overall domestic employment effects of a tariff imposition are likely to be positive. |
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| Subject | business-economics |
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