Suppose Ecuador Imposes a Tariff on Imported Bananas

question 197

True/False

Suppose Ecuador imposes a tariff on imported bananas. If the increase in producer surplus is $50 million, the reduction in consumer surplus is $150 million, and the deadweight loss of the tariff is $30 million, then the tariff generates $130 million in revenue for the government.

---

Definitions:

Organizational Change Approach

Strategies and methods used by organizations to modify their structure, processes, or culture to achieve desired outcomes.

Diagnostic Tool

Instruments or techniques used to identify the cause of an issue or condition.

Primary Objective

The main goal or purpose that an individual, group, or organization aims to achieve above all others.

Cultural Symbols

Objects, figures, or colors that represent specific ideas, values, or traditions within a culture.