If an Import-Competing Firm Is Imperfectly Competitive, Then Under Free

question 63

Multiple Choice

If an import-competing firm is imperfectly competitive, then under free trade an export tariff will ________ domestic market price, ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

• A) have no effect on; have no effect on; decrease; increase; decrease
• B) increase; have no effect on; increase; decrease; increase
• C) increase; have no effect on; decrease; increase; decrease
• D) decrease; increase; decrease; increase; decrease
• E) decrease; decrease; increase; decrease; have no effect on

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Definitions:

Purchase Agreement

A legal document outlining the terms and conditions under which a sale of property will take place.

Parcel

A parcel refers to a package or piece of land, especially one that is part of a larger area or to be used for a specific purpose.

Vendor

An individual or company offering goods or services for sale.

Encroachments

Unauthorized intrusion or extension of a building, structure, or other improvement onto another's property.