In a Single Year,Argentina Can Raise 100 Tons of Beef

question 210

Multiple Choice

In a single year,Argentina can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Venezuela can raise 50 tons of beef or produce 750 boxes of tulips.When the two countries begin trading beef for tulips,we expect the total surplus from beef consumption and production to:

• A)fall in Argentina.
• B)rise in Argentina.
• C)stay the same in Venezuela.
• D)either rise or fall in Venezuela.

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Definitions:

Excise Tax

An excise tax is a tax levied on the sale of specific goods or services, such as tobacco, alcohol, and fuel, often intended to discourage their use or generate revenue.

Imported Good

A product or service brought into one country from another for the purpose of selling it.

Government Payment

Financial transfers from the government to individuals, organizations, or other governmental units.

Equilibrium World Price

The price of a good at which the quantity supplied and quantity demanded are equal in the global market.