Question

Tariff effects: An overview Aa Aa Consider two hypothetical countries, Aniva and Kartaly. Both countries produce iWidgets, and the price of iWidgets is higher in Aniva than in Kartaly. If Aniva and Kartaly open to trade, producers in to lobby their government for an import tariff on iWidgets in order to protect the Kartaly foreign competition. would be more likely Aniva Which of the following statements about the effects of the tariff compared to free trade are correct? Check all that apply

In Aniva, producers of Widgets are willing to expand output.
□ In Aniva, some workers at retail and shipping companies that import Widgets lose their jobs.
In Aniva, consumers pay more for the homemade iwidgets. In Kartaly, workers in iwidget importing companies lose their jobs.
□ In Aniva, workers in Widget importing companies see more jobs available to them.

Answer 1

□In Aniva, consumers pay more for the homemade iwidgets. In Kartaly, workers in iwidget importing companies lose their jobs.

□ In Aniva, workers in Widget importing companies see more jobs available to them.

Step-by-step explanation:

Since Aniva produces more expensive iWidgets there is a latent demand for that product, so it is fair to say that on Free Trade Agreement between those countries

□ In Aniva, workers in Widget importing companies see more jobs available to them.

In addition to this, since between those two countries Kartaly already has a competitive price there is gonna be a shortage of jobs on a free trade agreement since there won't be any tariff for Aniva products or subsidized price. On the other hand, for Aniva residents this will be an open place.

□In Aniva, consumers pay more for the homemade iwidgets. In Kartaly, workers in iwidget importing companies lose their jobs.