1.

A tariff or quota that limits the entry of foreign goods to the U.S. market will typically:

benefit domestic producers in the protected industries at the expense of domestic consumers.

increase the nation's real income over time.

increase the demand for U.S. export goods.

benefit domestic consumers at the expense of domestic producers in the protected industry.

2

57

Use the figure below to answer the following question:

Figure 18-2

$1.80- b Dollar Price of foreign Exchange (pounds) 1.50- - - Quantity of Foreign Exchange (pounds)