A tariff makes the total economy
A) better off because it increases the domestic production of the good.
B) better off because it decreases the deadweight loss from international trade.
C) worse off because it creates a deadweight loss.
D) worse off because it creates revenue for the government.
E) worse off because it decreases both domestic consumer surplus and domestic producer surplus.
C
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Refer to Table 4-14. The equations above describe the demand and supply for Pauline's Pickled Pomegranates. The equilibrium price and quantity for Pauline's Pickled Pomegranates are $30 and 15 thousand units
What is the value of economic surplus in this market? A) $50 thousand B) $112.5 thousand C) $225 thousand D) $337.5 thousand
Which of the following would cause the supply of dollars curve in the United States to shift to the right?
a. Japanese imports become less popular. b. The value of the dollar falls. c. The supply of dollars decreases. d. Japanese imports became more popular.
The All-the-Rage microbrewery is represented in Figure 9-9. If the market price is $2.50 per pint, then in the short run, the microbrewery will
a.
earn the same profit by producing zero pints as by producing 50 pints per day
b.
produce zero pints per day to avoid an economic loss
c.
produce 50 pints per day and break even
d.
produce between zero and 50 pints per day
e.
produce more than 50 pints per day
If the economy is experiencing an inflationary gap, Keynesian economists advocate allowing flexible wages to shift the short-run aggregate supply curve (SRAC) upward and restore full employment
a. True b. False Indicate whether the statement is true or false