7. A high tariff on imported good X might reduce domestic employment in industry Y if A. X is an inferior good. B. Y is an inferior good. C. X is an input used domestically in producing Y. D. X and Y are substitute goods

7. A high tariff on imported good X might reduce domestic employment in industry Y if A. X is an inferior good. B. Y is an inferior good. C. X is an input used domestically in producing Y. D. X and Y are substitute goods

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 7PA

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Question

7. A high tariff on imported good X might
reduce domestic employment in industry Y
if
A. X is an inferior good.
B. Y is an inferior good.
C. X is an input used domestically in
producing Y.
OD. X and Y are substitute goods.

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