Answer to Question 1
The tariff may be a product of producer rent seeking. Each producer will gain a relatively large amount compared to the loss of each consumer. The producers may be able to coordinate their rent seeking activities. Each consumer will only lose a relatively small amount so it is unlikely that consumers will coordinate a protest to the tariff.
Answer to Question 2
Import restrictions increase the producer surplus of domestic producers. Consumer surplus, however, decreases by more than producers gain. Thus, the statement seems to be correct.
This chart illustrates the “drip down” model of government. In this, politics is formed by the soc
This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
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Government in America: People, Politics, and Policy, AP
Social scientists have not done well at devising theories to explain lovely romantic moments