A country is more likely to have net welfare gains when it imposes a tariff on a foreign monopolist if:
a. the tariff is small.
b. the tariff is large.
c. the tariff revenues are large.
d. the deadweight losses are large.
Answer: a. the tariff is small.
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Refer to the scenario above. What is the national income of the economy?
A) $7,000 B) $10,000 C) $2,000 D) $5,000
The figure above shows the market for a good with an external benefit. If the government wants to grant a subsidy so that the efficient quantity is produced, the subsidy must equal ________ per unit
A) $100 B) $150 C) $250 D) $300 E) $50
Explain the difference between nominal and effective tariffs
What will be an ideal response?
Jim, a U.S. citizen, works only in Croatia. The value added to production from his employment is:
A) included in only Croatian GNP. B) included only in U.S. GDP. C) included only in U.S. GNP. D) not included in either U.S. GDP or U.S. GNP.