If the Import Supply Curve Is Horizontal at the World

question 34

Multiple Choice

If the import supply curve is horizontal at the world price

• A) A tariff will lower domestic aggregate surplus
• B) A tariff will increase domestic aggregate surplus
• C) A tariff will not change domestic aggregate surplus
• D) A quota will increase domestic aggregate surplus

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Definitions:

BPI Team

A group of individuals dedicated to Business Process Improvement, focusing on analyzing, reviewing, and enhancing business processes to increase efficiency.

Globalization

The integration and interdependence of economic, social, cultural, and ecological facets of life, enabled by rapid advances in information technology.

Societal Pressure

The influence exerted by the society on individuals or organizations to conform to certain norms, values, or behaviors.

"As Is" Process

The documentation or mapping of a process or system exactly as it currently operates, without any modifications or improvements.