ec340ch5practice - include: (C) A. a rise in consumer...

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1. An import tariff imposed by a small country will cause the domestic price of the good to: (B) A. rise by more than the tariff. B. rise by the amount of the tariff. C. rise by less than the tariff. 2. When a small country imposes a tariff on an imported good, domestic consumers will buy less of the good while domestic firms will: (C) A. produce less of it. B. produce the same amount as before. C. produce more of it. 3. When a small country imposes an import tariff, the world price of the good will: (A) A. remain unchanged. B. increase. C. decrease. 4. An import tariff in a small country will cause consumer surplus to: (C) A. increase. B. remain unchanged. C. decline. 5. The welfare effects of the imposition of a tariff on an imported good in a small country
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Unformatted text preview: include: (C) A. a rise in consumer surplus. B. a fall in producer surplus. C. a rise in government revenue. 6. The net effect of an increase in tariffs on an imported good by a small country is: (A) A. a decrease in welfare. B. an increase in welfare. C. no change in welfare. 7. A reason for governments to impose tariffs on imports is: (C) A. to increase consumer surplus. B. to maximize social welfare. C. to protect domestic producers. 8. A small country that imposes a tariff will: (A) A. always have a deadweight loss. B. sometimes incur a deadweight loss. C. never have any deadweight loss....
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