Evaluate each of the following statements:

a) A tariff on textiles is equivalent to a tax on consumers and a subsidy to the textile producers and workers

b) A tariff lowers the real income of the country, while at the same time it distributes income from the consumers to the governments and to the import-competing industry (Use a diagram)

c) Chinese mushrooms undersell American mushrooms because Chinese labor is cheaper than American labor. We should impose a high tariff on mushrooms until China agrees to raise wage rates to the level prevailing in the United States