A) Is a Country a Small or Large Country If

question 40

Essay

A) Is a country a small or large country if it faces a perfectly price elastic
foreign export supply curve?
B) What is the optimal tariff for a country facing a perfectly price elastic
foreign export supply curve?
C) If the foreign export supply is less than the perfectly price elastic
foreign export supply curve, will the optimal tariff increase or decrease as
the price elasticity of demand increases?
D) What happens to the country's welfare if it applies a tariff higher than
the optimal tariff?

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Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Foot-In-The-Door Technique

A compliance strategy that involves getting a person to agree to a large request by first setting them up to agree to a modest request.

Shaping

A method of positive reinforcement in operant conditioning that rewards closer and closer approximations of the desired behavior.

Small Request

A technique in persuasion and compliance that involves asking for a minor initial request in hopes of influencing agreement to a larger request.