An Export Tariff Will ________ Producer Surplus, ________ Consumer Surplus

question 6

Multiple Choice

An export tariff will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

• A) increase; decrease; increase; have an ambiguous effect on
• B) increase; decrease; decrease; decrease
• C) increase; decrease; have no effect on; have an ambiguous effect on
• D) increase; decrease; have no effect on; decrease
• E) increase; increase; decrease; have an ambiguous effect on

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Definitions:

Barriers To Entry

Elements that obstruct or discourage new entrants from smoothly accessing a market or business sector.

Monopolistic Competition

A market structure featuring many companies selling similar but not identical products, allowing for some degree of market power and product differentiation.

Pure Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to perfect competition.

Pure Monopoly

A market structure where a single company or entity is the sole provider of a particular product or service, without any close substitutes.