The Effect of a Tariff on a Foreign Monopolist Is

question 118

Multiple Choice

The effect of a tariff on a foreign monopolist is similar to a large nation
Imposing a tariff on a small nation.What is the implication for the
Welfare of the home nation?

• A)Only very large tariffs bring any benefit to the home nation.
• B)No tariffs are the best policy; all tariffs have a deadweight net loss.
• C)Small tariffs can be beneficial, but only to a certain point.
• D)The foreign producer may actually raise prices to make the tariff impossible to impose.

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Definitions:

Increased Use

A situation where there is a growing reliance on or consumption of a particular substance or technology.

Andropause

A term sometimes used to describe age-related changes in male hormone levels, particularly testosterone, paralleling menopause in females.

Male Menopause

A term used to describe a condition in middle-aged men that may mimic the symptoms of menopause, including changes in mood and libido, due to a gradual decline in testosterone levels.

Testosterone

A steroid hormone primarily found in males, responsible for the development of male reproductive tissues and secondary sexual characteristics.