Suppose Ecuador Imposes a Tariff on Imported Bananas

question 197

True/False

Suppose Ecuador imposes a tariff on imported bananas. If the increase in producer surplus is $50 million, the reduction in consumer surplus is $150 million, and the deadweight loss of the tariff is $30 million, then the tariff generates $130 million in revenue for the government.

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Definitions:

Nasogastric Tube

A medical device inserted through the nose into the stomach, used for feeding or removing substances from the stomach.

Gastric Suction

A medical procedure that involves the removal of gastric contents through a tube inserted into the stomach.

Abdominal Decompression

A medical procedure to relieve pressure in the abdomen, which can improve blood flow and the function of abdominal organs.

Gastric Bypass Surgery

A surgical procedure performed to facilitate weight loss by altering the stomach and digestive system to limit food intake and nutrient absorption.