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:

Observation

The act of closely monitoring or watching phenomena as they occur in order to collect data or make inferences.

Accurate Information

Information that is correct, precise, and validated against reliable sources or data.

Self-efficacy Beliefs

The confidence in one's ability to execute behaviors necessary to produce specific performance attainments.

Paranoid Schizophrenia

A subtype of schizophrenia characterized by prominent delusions of persecution, grandeur, or jealousy, often accompanied by hallucinations.