Author Question: What does a successful protective tariff do? (a) It forces foreign manufacturers to pay higher ... (Read 73 times)

dalyningkenk · **on:** Jun 30, 2018

What does a successful protective tariff do?

(a) It forces foreign manufacturers to pay higher wages.
(b) It re-enforces competition.
(c) It creates an economic rent that goes to the competing domestic industries producing the
taxed imported goods.
(d) It mandates accelerated technological advance in the domestic economy.

Question 2

Many economists who accept the real business cycle explanations of economic fluctuations

a. believe that the sharp rise in the relative price of imported oil was the central cause of the deep recession in the United States in the mid-1970s.
b. believe that the restrictive Federal Reserve monetary policy was the central cause of the deep recession in the United States in the mid-1970s.
c. believe that the sharp rise in the relative price of imported oil was not the main cause of the deep recession in other industrialized nations in the mid-1970s.
d. both a and c.
d. None of the above