In Order for Large Countries to Successfully Use Tariffs to Increase

question 32

Multiple Choice

In order for large countries to successfully use tariffs to increase well being,

• A)they must have significant market power so that foreign firms will cut prices to preserve their sales.
• B)the deadweight loss created by the tariff must be greater than the government revenue the tariff generates.
• C)domestic production must increase more significantly than for the small country case.
• D)domestic consumption and imports must decrease more significantly than in the small country case.

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Definitions:

Fossil Fuels

Fossil fuels, including coal, oil, and natural gas, are energy sources formed from the decayed remains of ancient plants and animals, accumulated and altered over millions of years.

Detrital Food Web

A complex network of food chains based on the consumption of dead organic matter (detritus) by decomposers and detritivores.

Grazing Food Web

A community of organisms where the primary energy transfer is through consumption of plants (primary producers) by herbivores (grazers).

Atmospheric Carbon Dioxide

A greenhouse gas present in the Earth's atmosphere, contributing to the greenhouse effect and global warming.