Suppose That There Is No Home Production of a Good

question 31

Multiple Choice

Suppose that there is no home production of a good (imports supply all home demand) . If the home country then applies a tariff to this good exported by a foreign monopoly, the price net of the tariff received by the foreign monopolist is:

• A) lower than under free trade.
• B) higher than under free trade.
• C) the same as under free trade.
• D) so high that no sales are possible.

---

Definitions:

Self-Determination Theory

A psychological theory of motivation that emphasizes the role of innate psychological needs in the development of personal growth and behavioral regulation.

Basic Psychological Needs

Essential needs for psychological health, encompassing independence, skill, and connection.

Achievement

Success or accomplishment reached through effort, skill, or courage.

Controlled Motivation

A type of motivation that is externally regulated, often through rewards and punishments, rather than stemming from inherent interest or enjoyment.