Denmark Is an Importer of Computer Chips and Adds a $5

question 21

Multiple Choice

Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip.Suppose Denmark removes the tariff.Which of the following outcomes is not possible?

• A)More Danish-produced chips are sold in Denmark.
• B)More foreign-produced chips are sold in Denmark.
• C)Danish consumers of chips become better off.
• D)Total surplus in the Danish chip market increases.

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Definitions:

A Hedge

A protective barrier consisting of closely planted bushes or shrubs; metaphorically, a means to minimize risk or shield against losses.

A Disclaimer

A statement that denies something, especially responsibility, or sets forth a limitation to avoid legal or other potential liabilities.

Back-Channel Feedback

The small vocal and visual comments a listener makes while a speaker is talking, without taking over the speaking turn. This includes responses such as “Yeah,” “Huh?” “M-hmn,” head nods, brief smiles, and completions of the speaker’s words. Back-channel feedback is crucial to coordinate conversation smoothly.

Paralanguage

All the vocal aspects of speech other than words, including loudness, pitch, speed of speaking, pauses, sighs, laughter, and so on.