Question
23.In the Mixed Specific-Factors Model with two sectors Clothing (C) and Wine (W), the government imposes a tariff on C. As a result, the change
23.In the Mixed Specific-Factors Model with two sectors Clothing (C) and Wine (W), the government imposes a tariff on C. As a result, the change in the welfare of the workers is ambiguous because their budget line
A.Moves inward on both the axes
B.Swings outward on the W-axis but swings inward on the C-axis
C.Swings inward on the W-axis but swings outward on the C-axis
D.Moves outward on both the axis
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Contemporary Labor Economics
Authors: Campbell R. McConnell, Stanley L. Brue, David Macpherson
11th Edition
1259290602, 1259290603, 978-1259290602
