Denmark Is an Importer of Computer Chips,taking the World Price

question 154

Multiple Choice

Denmark is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Denmark imposes a $5 tariff on chips.Which of the following outcomes is possible?

• A)More Danish-produced chips are sold in Denmark.
• B)More foreign-produced chips are sold in Denmark.
• C)Danish consumers of chips become better off.
• D)Total surplus in the Danish chip market increases.

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Definitions:

Inflammation

The body's response to injury or infection, characterized by redness, warmth, swelling, and pain.

Vascular Permeability

Refers to the capacity of blood vessel walls to allow the flow of small molecules or cells into and out of the bloodstream.

Viscosity

Resistance to flow or alteration of shape by any substance as a result of molecular cohesion.

Interferon

A group of signaling proteins made and released by host cells in response to the presence of pathogens like viruses, bacteria, parasites, and tumor cells.