In the country levying the tariff, the tariff will
A) increase both consumer and producer surplus.
B) decrease both the consumer and producer surplus.
C) decrease consumer surplus and increase producer surplus.
D) increase consumer surplus and decrease producer surplus.
E) decrease consumer surplus but leave producers surplus unchanged.
C
You might also like to view...
Benefits of free trade include all of the following EXCEPT
A) increased world production. B) higher standards of living. C) transmission of new ideas. D) increased international mobility of labor.
If consumers' buying decisions are not very sensitive to changes in price, then their demand is:
A. more elastic. B. less elastic. C. perfectly inelastic. D. unit elastic.
Risk premiums do all of the following except
A. Help explain why banks charge different customers different interest rates. B. Allocate limited resources only to the safest investors. C. Compensate people who finance risky ventures. D. Are the difference in the rates of return on risky and safe investments.
________ raised average tariff rates by over 50 percent in the United States in 1930
A) The GATT B) The WTO C) NAFTA D) The Smoot-Hawley Tariff