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Which of the Following Is an Incorrect Observation

Question 132

Multiple Choice

Which of the following is an incorrect observation?


A) ​Import tariffs benefit domestic producers and the government, but harms domestic consumers.
B) ​Gains from trade in terms of world output are reduced by export subsidies.
C) ​The overall domestic employment effects of a tariff imposition are likely to be positive.
D) ​If the imposition of a tariff leads to retaliatory tariffs by other countries, domestic employment outside the industry gaining the tariff protection would likely suffer.

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