The Effect of a Tariff on a Specific Imported Good

question 76

Multiple Choice

The effect of a tariff on a specific imported good on (domestic) consumer and producer surplus can be summarized as follows:

• A)consumer surplus is increased and producer surplus is decreased.
• B)consumer surplus and producer surplus are both increased.
• C)consumer surplus and producer surplus are both decreased.
• D)consumer surplus is decreased and producer surplus is increased.
• E)there is no effect on either consumer or producer surplus.

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Definitions:

Theodore Roosevelt

The 26th President of the United States (1901-1909), known for his progressive policies, conservation efforts, and key role in negotiating the end of the Russo-Japanese War.

Robert La Follette

An American politician and reformer, known for his role as a leader of the Progressive Movement and his efforts to fight corporate power and corruption.

World War I

A global conflict that took place primarily in Europe between 1914 and 1918, involving many of the world's great powers.