Refer to the Table Above for a Certain Product's Market

question 23

Multiple Choice

Refer to the table above for a certain product's market in Econland. Assume that the world price of the product is $6. What would be the difference in the total revenue received by foreign producers after a quota of 400 units is imposed, compared against the total revenue received by foreign producers when a $1 per unit tariff is paid?

• A) $0 revenue difference
• B) $100 more in revenue with a quota than with a tariff
• C) $400 more in revenue with a quota than with a tariff
• D) $400 more in revenue with a tariff than with a quota

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Definitions:

Large Samples

Refers to datasets that are sufficiently large to enable statistically meaningful analysis, often used to achieve more accurate estimates of population parameters.

Lower Confidence Bound

The lower limit of a confidence interval, indicating the smallest value that, based on the data, might be considered a plausible estimate of a parameter.

Population Proportions

A statistical measure that represents the fraction or percentage of units in a population that possess a certain trait or characteristic.

Upper Confidence Bound

The upper limit of a confidence interval, indicating the maximum value within which a population parameter is expected to lie with a certain probability.