The Japanese restrict foreign imports of rice into their country. If the restric

Question

The Japanese restrict foreign imports of rice into their country. If the restrictions were removed, Japanese rice producers would be _________ and there would be an overall net _______ in net welfare in Japan.

a) better off, gain
b) better off, loss
c) worse off, gain
d) worse off, loss

I know the rice producers would be worse off, however does the welfare increase or decrease? IT would place more of a burden on the producers in the short run as frictional unemployment would result, but it would also take a heavy burden off the consumers purchasing the rice. Would the burden off the consumers cause a greater increase in net welfare, or would the frictional unemployment cause the net welfare to decrease?

Explanation / Answer

c) worse off, gain he burden off the consumers cause a greater increase in net welfare

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.