Many People Argue That the Imposition of Tariffs in Industry

Multiple Choice

Many people argue that the imposition of tariffs in industry X will increase factor incomes in that industry and therefore be good for the country as a whole.The counter-argument is that

A) the increase in factor incomes in industry X would reduce profits to business owners by an equal amount.
B) factor incomes would first rise and then decrease in industry X.
C) the increase in industry X factor incomes would be more than offset by reductions in real incomes to all other domestic residents.
D) the increase in factor incomes would increase unemployment.
E) factor incomes overall would increase,but wages in industry X would fall,which would hurt workers in that industry.