In order for large countries to successfully use tariffs to increase well-being,
A) they must have significant market power .
B) the deadweight loss created by the tariff must be greater than the government revenue the tariff generates.
C) domestic production must increase more significantly than for the small country case.
D) domestic consumption and imports must decrease more significantly than in the small country case.
A
You might also like to view...
The larger the four-firm concentration ratio, the ________ competition within an industry; the larger the Herfindahl-Hirschman Index, the ________ competition within an industry
A) more; more B) more; less C) less; more D) less; less E) The premise of the question is wrong because the four-firm concentration ratio applies only to markets with four firms in it and these markets are, by definition, not competitive.
The parent company would want to reward managers based on division revenues because
a. The managers usually have the least information about their divisions b. It would incentivize the otherwise clueless managers about the daily activities of their divisions c. The managers usually have the best information about how to run their divisions d. None of the above
When the housing market bubble burst, many people found that:
A. they owed more than their house was now worth. B. it was much easier to sell their home. C. the value of their homes exceeded their mortgage loans. D. there was a limited number of houses for sale.
Economic efficiency approach offers each polluter the flexibility to reduce emissions as cost-effectively as possible
Indicate whether the statement is true or false