Suppose Ecuador imposes a tariff on imported bananas. If the increase in producer surplus is $50 million, the reduction in consumer surplus is $150 million, and the deadweight loss of the tariff is $30 million, then the tariff generates $130 million in revenue for the government
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
The expectations-augmented Phillips curve implies that as expected inflation increases, nominal wages ________ to prevent real wages from ________
A) fall; rising B) fall; falling C) rise; falling D) rise; rising
Two telephone networks that grant access so they can complete each others' calls will be motivated to set efficient prices
Indicate whether the statement is true or false
Refer to the figure above. If AD 1 shifts to AD 2, then the equilibrium output:
Increases from Q1 to Q3 while the price level falls from P2 to P1 Increases from Q1 to Q2 while the price level rises from P1 to P2 Increases from Q1 to Q3 while the price level rises from P1 to P2 Increases from Q1 to Q2 while the price level falls from P2 to P1
In terms of an economic contribution, building a football stadium
A. has been shown to be futile. The team leaves anyway. B. with public dollars has never been shown to enhance a community's economy. C. to attract a team has always been a successful strategy in growing an community's economy. D. to keep a team that would otherwise leave has always been a successful strategy in growing an community's economy.