If a Small Country Produces 100 Units of Product X

question 26

Multiple Choice

If a small country produces 100 units of product X and consumes 140 units at a price of $2 under free trade, but the imposition of a tariff leads to a situation where domestic price is $2.20, domestic production is 120 units, and domestic consumption is 125 units, then the gain in producer surplus in this country because of the tariff is __________.

• A) $1.00
• B) $22.00
• C) $24.00
• D) $26.50

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Definitions:

Reinforcement Strategy

A technique employed to encourage desired behavior by using incentives or consequences, often used in organizational behavior management.

Performance Feedback

Information provided to individuals or groups regarding their performance, intended to guide future improvements.

Informal Acknowledgement

Recognition or validation of an individual's contributions or achievements in a non-formal or unofficial manner, often contributing to personal satisfaction and motivation.

Extinguish

In behavioral psychology, to diminish or eliminate a learned response, typically by discontinuing reinforcement of the response.