When the domestic price of a good is below the world price, the imposition of a tariff on the import of the good _____
a. results in a loss in producer surplus
b. results in a gain in producer surplus
c. does not affect government revenue
d. does not lead to a deadweight loss
b
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To obtain GDP from a national income base,
a. add indirect business taxes and Social Security taxes b. add capital depreciation and Social Security taxes c. add indirect business taxes and personal taxes d. subtract indirect business taxes and capital depreciation e. add indirect business taxes and capital depreciation
In a growing economy, it is possible to eliminate
A) absolute poverty. B) relative poverty. C) both absolute and relative poverty. D) either absolute nor relative poverty.
The slope of the isoquant is
A. negative. B. the marginal rate of technical substitution. C. -MPL/MPK. D. All of the above are correct.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher