According to the graph shown, the change to government revenue brought about by the introduction of a tariff to an economy once operating under free trade is:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. an increase of area JK.
B. an increase of area FGJK.
C. an increase of area IJKL.
D. a decrease of area IL.
A. an increase of area JK.
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Education
A) does not really add to one's human capital. B) does not really affect one's income. C) is a major factor affecting one's income. D) explains all the differences in male-female incomes.
Who loses surplus when consumers in a market are forced to pay a Pigouvian tax for a negative externality?
A. Producers B. Consumers C. Others affected by the externality D. Both producers and consumers lose surplus when negative externalities are internalized.
An industry in which 5 firms each have a 10 percent market share and 50 firms each have a 1 percent market share will have a Herfindahl index equal to:
A. 1,100. B. 500. C. 550. D. 1,500.
Which of the following statements is correct?I.When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only.II.Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.
A. I only B. II only C. Both I and II D. Neither I nor II