In the Case of a Small Country,consumer Surplus

question 58

Multiple Choice

In the case of a small country,consumer surplus

• A)decreases less with a tariff than with an equivalent quota.
• B)decreases less with a quota than with an equivalent tariff.
• C)is not changed by tariffs or quotas.
• D)decreases the same with tariffs and equivalent quotas.
• E)increases more with quotas.

---

Definitions:

Required Return

represents the minimum percentage profit incumbent upon an investment to be considered worthwhile by an investor, factoring in risks associated.

Return

The income generated from an investment, expressed as a percentage of the original investment cost.

Discounted Payback

A payback period calculation that takes into account the time value of money by discounting each of the cash flows from the project at a particular rate before it sums them to determine the break-even point.

Payback Period

The time required for the return on an investment to "pay back" the sum of the original investment, commonly used as a measure of investment risk.