The Imposition of an Export Tax on Good X by Country

question 17

Multiple Choice

The imposition of an export tax on good X by country A, other things equal,

• A) will improve the terms of trade of country A if A is a "small" country.
• B) will lead to a lower price of good X in country A's home market if A is a "large" Country but will not affect the price of good X in A's home market if A is a "small" country.
• C) will always lead to an improvement in country A's welfare if A is a "large" country.
• D) will lead to an increase in consumer surplus in country A.

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Definitions:

Anxiety

A state of mental uneasiness, apprehension, or dread producing an increased level of arousal caused by an impending or anticipated threat to self or significant relationships.

Analyzing

The process of examining components or structure of a material or concept to understand its nature, typically to find patterns, associations, or insights.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension, potentially leading to physical illnesses or psychological issues.

Shock Phase

The second stage of the general adaptation syndrome described by Selye.