The Resulting Increase in Producer Surplus Made Possible by the Imposition

question 23

Multiple Choice

The resulting increase in producer surplus made possible by the imposition of a tariff is often referred to as the:

• A)tax effect of a tariff
• B)revenue effect of a tariff
• C)subsidy effect of a tariff
• D)consumption effect of a tariff

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Definitions:

Type I Error

Statistically, the probability of rejecting a good lot.

Good Lot

A term used in quality control to describe a batch of products that meet specified quality standards.

AQL

Acceptable Quality Level, a statistical measurement used in quality control that defines the maximum number of defective items allowed in a sample lot.

Type II Error

Statistically, the probability of accepting a bad lot.