The Metzler Paradox

question 52

Multiple Choice

The Metzler Paradox

• A) could theoretically happen when a small country levies a tariff.
• B) refers to a situation when an Optimal Tariff hurts a country's economic welfare.
• C) refers to a situation when the imposition of a tariff lowers domestic prices.
• D) refers to a situation when the imposition of a tariff helps foreign exporters.
• E) refers to a situation when export growth in a country harms its economic welfare.

---

Definitions:

Authorized Shares

The upper limit of shares a corporation can legally distribute, as outlined in its articles of incorporation.

Shareholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company or corporation.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.