The Effect of a Tariff on a Specific Imported Good

question 107

Multiple Choice

The effect of a tariff on a specific imported good on (domestic) consumer and producer surplus can be summarized as follows:

• A)consumer surplus and producer surplus are both decreased.
• B)there is no effect on either consumer or producer surplus.
• C)consumer surplus and producer surplus are both increased.
• D)consumer surplus is increased and producer surplus is decreased.
• E)consumer surplus is decreased and producer surplus is increased.

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Definitions:

Revenues

The total income generated by a company from its business activities, before any expenses are subtracted.

Timmons Model

A model of entrepreneurship that emphasizes the importance of the opportunity, team, and resources, and suggests that these elements are critical to the success of any venture.

Driving Forces

Factors or influences that contribute to the momentum and direction of change in an organization or system.

Timmons Model

A model of entrepreneurship that emphasizes the dynamic balance between opportunity, resources, and team, with an entrepreneur at the center managing these elements.