Asked by Elyssa Arcibal on May 06, 2024
Verified
A high tariff on imported good X might reduce domestic employment in industry Y if
A) X is an input used domestically in producing Y.
B) X and Y are substitute goods.
C) X is an inferior good.
D) Y is an inferior good.
Domestic Employment
Jobs or positions of employment within a country's own borders, as opposed to international or overseas employment.
Imported Good
A product or commodity brought into one country from another for sale.
- Evaluate the financial repercussions of imposing trade barriers, particularly their influence on local job markets and global diplomatic ties.
Verified Answer
TB
Taziana BluntMay 08, 2024
Final Answer :
A
Explanation :
If imported good X is used as an input in producing domestic industry Y, a high tariff on X would increase the cost of production for the Y industry, leading to a decline in demand for Y and a subsequent decrease in employment in the industry.
Learning Objectives
- Evaluate the financial repercussions of imposing trade barriers, particularly their influence on local job markets and global diplomatic ties.