Suppose That There Is a Negative Externality Associated with

question 3

Multiple Choice

Suppose that there is a negative externality associated with
Alcohol consumption in the United States.Will the United States
Be better or worse off if it eliminates all tariffs on alcohol
Imports?

• A)The United States will always be better off when tariffs on imported alcohol are eliminated.
• B)The United States will always be worse off when tariffs on imported alcohol are eliminated.
• C)The United States will be no better or worse off when tariffs on imported alcohol are eliminated.
• D)The United States will be better off only if the private gains from trade exceed the increased social costs of alcohol
• Consumption when tariffs on imported alcohol are eliminated.

---

Definitions:

Uncertainty Avoidance

A cultural dimension that describes the extent to which people in a society are uncomfortable with ambiguity, risk, and uncertainty, leading to a preference for structured situations and clear rules.

Gender Equality

The state in which access to rights or opportunities is unaffected by gender, ensuring fairness for all genders.

Assertiveness

The quality of being confident and direct in claiming one's rights or putting forward one's views.

Formality

The degree of adherence to established rules, procedures, and protocols, often influencing the tone and conduct within professional environments.