Figure 9-6 -When a Country That Imported a Particular Good Abandons a Good

question 99

Multiple Choice

Figure 9-6
-When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

• A)consumer surplus increases and total surplus increases in the market for that good.
• B)consumer surplus increases and total surplus decreases in the market for that good.
• C)consumer surplus decreases and total surplus increases in the market for that good.
• D)consumer surplus decreases and total surplus decreases in the market for that good.

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Definitions:

Top Quintile

Refers to the highest fifth or 20% segment of a population or group sorted by a particular metric, often used in the context of income distribution.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, typically aimed at redistributing wealth more equitably.

Value-Added Tax (VAT)

A type of tax that is applied incrementally at each stage of production and distribution on the value added to goods and services.

Retail Sales Tax

A tax on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the retailer.