The nationally optimal tariff is the tariff for which
A. the difference between the part of the tariff paid by the exporters and the welfare loss associated with the consumption and production effects is the highest.
B. the government collects the highest tariff revenue.
C. the difference between the government tariff revenue and the sum of consumption and production effect is the highest.
D. the production effect is equal to the consumption effect of the tariff.
Answer: A
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In the market for used cars, if there is asymmetric information yet all cars sell for the same price
A) there is an efficiency problem and there are equity implications. B) there is no efficiency problem, but there are equity implications. C) buyers of lemons win at the expense of buyers of good cars. D) there is no efficiency problem and there are no equity implications.
Profits for a monopolist can be illustrated with a graph showing:
a. marginal revenue and marginal profits. b. total revenue and marginal costs. c. marginal revenue and total profits. d. total revenues and total costs.
A good's price elasticity of demand can be calculated by using the formula of
A. absolute change in quantity demanded divided by absolute change in price. B. percentage change in quantity demanded divided by percentage change in price. C. percentage change in price divided by percentage change in income. D. percentage change in price divided by percentage change in quantity demanded.
Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2 Derive the market supply curve
What will be an ideal response?