Question: When the government increases tariffs: A . deadweight losses are eliminated because foreign producers sell their product below cost. B . production switches from low
When the government increases tariffs:
A deadweight losses are eliminated because foreign producers sell their product below cost.
B production switches from lowcost foreign producers to highcost domestic producers, causing resources to be wasted.
C domestic producers produce more output, increasing the gains from trade.
D domestic consumers buy more goods, increasing the gains from trade.
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