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:

Activation-synthesis Theory

A theory suggesting that dreams are the result of the brain's attempt to make sense of neural activity that occurs during sleep.

Cortex

The outer layer of the cerebrum in the brain, involved in many complex brain functions including memory, attention, perceptual awareness, thought, language, and consciousness.

Neural Activity

Refers to the electrical and chemical processes that occur within the brain and nervous system to enable thought, perception, and action.

Activation-synthesis Theory

A theory that suggests dreams are the result of the brain's attempt to make sense of random neural activity during sleep.