Chile Is an Importer of Computer Chips,taking the World Price

question 206

Multiple Choice

Chile is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Chile imposes a $7 tariff on chips.Which of the following outcomes is possible?

• A)The price of chips in Chile increases to $19;the quantity of Chilean-produced chips decreases;and the quantity of chips imported by Chile decreases.
• B)The price of chips in Chile increases to $16;the quantity of Chilean-produced chips increases;and the quantity of chips imported by Chile decreases.
• C)The price of chips in Chile increases to $19;the quantity of Chilean-produced chips increases;and the quantity of chips imported by Chile decreases.
• D)The price of chips in Chile increases to $16;the quantity of Chilean-produced chips increases;and the quantity of chips imported by Chile does not change.

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Definitions:

Corpus Callosum

A broad band of nerve fibers joining the two hemispheres of the brain, facilitating interhemispheric communication.

Frontal Lobes

The areas of the brain located behind the forehead that are responsible for complex cognitive functions, including emotional regulation, problem solving, and planning.

Motor Cortex

The area of the brain responsible for the planning, control, and execution of voluntary movements.

Postcentral Gyrus

The region in the parietal lobe of the brain where the primary somatosensory cortex is located, responsible for processing tactile information.