Refer to the Graph Shown for a Small Country That

question 13

Multiple Choice

Refer to the graph shown for a small country that is a price taker internationally. Assume the foreign supply of this product is perfectly elastic at a price of $4 per unit.To have the same effect on imports as a $2 per-unit tariff, the government would need to set an import quota of:

• A)1,200 units.
• B)1,300 units.
• C)2,500 units.
• D)5,000 units.

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Definitions:

Unbiased Estimator

A statistical estimator whose expected value is equal to the parameter being estimated, indicating accuracy across samples.

Expected Value

The long-run average value of repetitions of the same experiment or random process, calculated as the sum of all possible values weighted by their probabilities of occurrence.

Parameter

A numerical characteristic or feature of a population that is estimated using sample data.

Sample Variance

A measure of the dispersion or variability within a sample dataset, indicating how much the individual data points differ from the sample mean.