A Small Country Is Considering Imposing a Tariff on Imported

question 8

Multiple Choice

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: $$\begin{array} { l l } \text { World price of wine (free trade) : } & \$ 20 \text { per bottle } \\\text { Domestic production (free trade) : } & 500,000 \text { bottles } \\\text { Domestic production (after tariff) : } & 600,000 \text { bottles } \\\text { Domestic consumption (free trade) : } & 750,000 \text { bottles } \\\text { Domestic consumption (after tariff) : } & 650,000 \text { bottles }\end{array}$$ The imposition of the tariff on wine will cause the country's economic well-being to _____ by _____.

• A)fall; $0.5 million
• B)rise; $0.75 million
• C)fall; $100,000
• D)fall; $0.75 million

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Definitions:

Parenchyma Cells

A type of plant cell known for its role in photosynthesis, storage, and tissue repair and regeneration.

Horizontal Pathway

A gene transfer method in which genetic information moves between organisms in a manner other than traditional reproduction.

Soil

The top layer of earth in which plants grow, composed of organic matter, minerals, gases, liquids, and organisms that together support life.

Pore Spaces

Voids or gaps found within soil or rock, where air or fluid can be stored.