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:

Personality Test

An assessment tool designed to measure and evaluate personality characteristics and psychological traits.

Reality Principle

The concept in psychoanalytic theory that represents the constant adjustment of seeking to satisfy basic desires with the demands of the external world.

Id

A concept in psychoanalytic theory representing the instinctual drives and primal impulses.

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.