Suppose That Australia Imposes a Tariff on Imported Computer Chips

question 56

True/False

Suppose that Australia imposes a tariff on imported computer chips. If the increase in producer surplus is $100 million, the increase in tariff revenue is $200 million and the reduction in consumer surplus is $500 million, then the deadweight loss of the tariff is $800 million.

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Definitions:

Number Of Employees

The total count of individuals employed by a company or organization, either full-time or part-time.

Step-down Method

A method used in cost accounting to allocate service department costs to producing departments, considering inter-departmental services.

Step-down Method

An accounting method used for allocating indirect costs to different departments based on a hierarchy where the first allocation base is the costliest department.

Personnel Department

The division of a business that is focused on activities relating to employees, such as hiring, training, and benefits administration.