In the General Equilibrium Graph with a Production-Possibilities Frontier (PPF)

question 7

Multiple Choice

In the general equilibrium graph with a production-possibilities frontier (PPF) and consumer indifference curves,

• A) a tariff has the same welfare impact as a subsidy to the import-competing industry (provided domestic production is the same with each alternative instrument).
• B) a tariff reduces both real income and the gains from exchange.
• C) a tariff reduces consumer welfare only if the tariff is a prohibitive tariff (i.e., Eliminates all imports).
• D) protection shifts the PPF outward but reduces consumer welfare.

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Definitions:

Vector Organisms

Animals like mosquitoes, ticks, and birds that carry and spread pathogens (germs or other infectious agents) in a given area.

Pathogens

Microorganisms, such as bacteria, viruses, fungi, or parasites, that can cause disease or illness in their host.

Geographic Locations

Specific places or areas on Earth's surface identified by their physical and geographic characteristics.

Pandemic

An epidemic of an infectious disease that has spread across a large region, for instance multiple continents or worldwide, affecting a substantial number of people.