Suppose That There Is a Negative Externality Associated with Alcohol

question 134

Multiple Choice

Suppose that there is a negative externality associated with alcohol consumption in the United States (e.g., the costs of publicly funded alcoholism treatment centers) . Will the United States be better or worse off if it eliminates all tariffs on alcohol imports?

• A) The United States will always be better off when tariffs on imported alcohol are eliminated.
• B) The United States will always be worse off when tariffs on imported alcohol are eliminated.
• C) The United States will be no better or worse off when tariffs on imported alcohol are eliminated.
• D) The United States will be better off only if the private gains from trade exceed the increased social costs of alcohol consumption when tariffs on imported alcohol are eliminated.

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Definitions:

Extraembryonic Membrane

Membranes that are not part of the embryo but provide crucial support functions, such as nutrition and waste removal, during development in the womb.

Blastopore

The opening of the central cavity of an embryo in the early stage of development, which can develop into the mouth or anus in different animals.

Blastocoel

The fluid-filled cavity that forms inside the blastula, an early stage in the embryonic development of animals.

Capacitation

A physiological change that sperm undergo to gain the ability to penetrate and fertilize an egg.