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:

Outcomes

The results or consequences of actions, processes, or games, which can be measured to assess performance or success.

Probabilities

The quantification of how probable an event is to happen, represented by a numerical value ranging from 0 to 1.

Expected Value

A calculation used in statistics and probability to determine the average outcome when the future includes scenarios that may or may not happen.

Values

Fundamental beliefs or guiding principles that influence the behaviors and decision-making processes of individuals or organizations.