In Order for Large Countries to Successfully Use Tariffs to Increase

question 3

Multiple Choice

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

• A)they must have significant market power .
• 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:

Induced Voltage

A voltage generated in a conductor due to its motion in a magnetic field or due to a changing magnetic field around it.

Ampere-turns

A unit of magnetomotive force represented by the product of current (in amperes) and the number of turns in a coil, influencing the strength of the magnetic field generated.

Electro-magnetic Field

A physical field produced by electrically charged objects affecting the behavior of charged objects in its vicinity.

Iron Core

A component made of iron within an electromagnetic device, such as a transformer or inductor, used to enhance magnetic flux.