Denmark Is an Importer of Computer Chips,taking the World Price

question 14

Multiple Choice

Denmark is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Denmark imposes a $5 tariff on chips.Which of the following outcomes is possible?

• A)The price of chips in Denmark increases to $19; the quantity of Danish-produced chips increases; and the quantity of chips imported by Denmark decreases.
• B)The price of chips in Denmark increases to $17; the quantity of Danish-produced chips increases; and the quantity of chips imported by Denmark decreases.
• C)The price of chips in Denmark increases to $17; the quantity of Danish-produced chips increases; and the quantity of chips imported by Denmark increases.
• D)The price of chips in Denmark increases to $15; the quantity of Danish-produced chips increases; and the quantity of chips imported by Denmark decreases.

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Definitions:

Growth Mindset

The belief that one's abilities and intelligence can be developed through dedication, hard work, and resilience.

Cognitive Strategies

Techniques that people use to learn more efficiently, managing and applying their cognitive skills effectively for understanding and problem-solving.

Paradigm Shifts

Significant changes in the fundamental concepts, methods, or practices within a particular field or discipline, leading to a new framework or understanding.

Negative Passion

A strong feeling about an activity or concept that leads to adverse effects on one's well-being or performance.