Suppose Ecuador Imposes a Tariff on Imported Bananas

question 197

True/False

Suppose Ecuador imposes a tariff on imported bananas. If the increase in producer surplus is $50 million, the reduction in consumer surplus is $150 million, and the deadweight loss of the tariff is $30 million, then the tariff generates $130 million in revenue for the government.

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Definitions:

Statute of Frauds

A legal doctrine that requires certain types of contracts to be in writing and signed by all parties to be enforceable.

Statute of Frauds

A legal doctrine requiring certain contracts to be in writing to be legally enforceable.

Evidenced

Something that is made apparent or is provided as proof in support of an assertion, fact, or claim.

Collateral Contracts

Secondary contracts that supplement a primary contract, often providing for additional rights or obligations that enhance the original agreement.