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

question 206

Multiple Choice

Chile is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Chile imposes a $7 tariff on chips.Which of the following outcomes is possible?

• A)The price of chips in Chile increases to $19;the quantity of Chilean-produced chips decreases;and the quantity of chips imported by Chile decreases.
• B)The price of chips in Chile increases to $16;the quantity of Chilean-produced chips increases;and the quantity of chips imported by Chile decreases.
• C)The price of chips in Chile increases to $19;the quantity of Chilean-produced chips increases;and the quantity of chips imported by Chile decreases.
• D)The price of chips in Chile increases to $16;the quantity of Chilean-produced chips increases;and the quantity of chips imported by Chile does not change.

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Definitions:

Precondition

A condition that must be true or satisfied before the execution of a procedure or operation to ensure its correctness and safety.

Postcondition

An assertion that specifies the state of computation after the execution of a function or a block of code.

Call-By-Value

A method of parameter passing in programming where a copy of the actual parameter's value is made and passed to the function, protecting the original value from modification.

Primitive Types

Basic data types built into the language that include int, char, float, and boolean, among others.