Relative to Free Trade, When a Tariff Is Imposed in a Market

question 50

Multiple Choice

Relative to free trade, when a tariff is imposed in a market for an imported good,

• A) the producer surplus in that market decreases.
• B) the total surplus in that market decreases.
• C) tariff revenue decreases.
• D) the consumer surplus in that market increases.
• E) deadweight loss decreases.

---

Definitions:

Catastrophic Stress

Extreme stress that can occur from witnessing or experiencing a disastrous event, leading to significant psychological trauma.

Post-traumatic Stress Disorder (PTSD)

Post-traumatic Stress Disorder (PTSD) is a psychiatric disorder that can occur in people who have experienced or witnessed traumatic events, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.

Eustress

Positive stress that motivates individuals and enhances their performance.

Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged stress, often related to work.