Denmark Is an Importer of Computer Chips,taking the World Price

question 154

Multiple Choice

Denmark is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Denmark imposes a $5 tariff on chips.Which of the following outcomes is 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:

Classical Conditioning

A learning process in which a natural response becomes triggered by a previously neutral stimulus by repeatedly associating it with a stimulus that automatically triggers that response.

Congruence

The state of agreement or harmony between objects, ideas, or values.

Collective Unconscious

A term coined by Carl Jung, referring to structures of the unconscious mind which are shared among beings of the same species.

Shared Environment

The environmental factors that contribute to the similarities in development and behavior among family members living in the same household.